HSBC Research: BYD's launch of the "Super e Platform" may raise technical standards, closely monitoring milestones related to autonomous driving

HSBC Research published a report indicating that BYD (01211.HK) is expected to launch the "Super e Platform" in early March, which is anticipated to enhance technical standards particularly in terms of range and efficiency, and establish pricing standards that may affect competitive strategies in the second quarter.

The bank continued to state that due to the Lunar New Year factors affecting mid-February data, preliminary data should be interpreted with caution, and trends are expected to normalize in March and April. Additionally, the bank is closely monitoring milestones related to autonomous driving. It believes that policies are further supporting the commercialization of autonomous driving and that advanced autonomous driving technology and Robotaxis are the most attractive structural themes this year.

Looking ahead, the bank expects the overall pricing environment for passenger vehicles to remain resilient. Original Equipment Manufacturers may pass some costs onto consumers by emphasizing high-value features while streamlining less significant configuration items.

In terms of stock selection, the bank is optimistic about companies with scale and clear catalysts, recommending BYD, Leapmotor (09863.HK), XPeng (XPEV.US), Horizon Robotics (09660.HK), CATL (03750.HK), and Top Group (601689.SH).

HSBC Research's investment ratings and target prices for autonomous driving-related stocks are as follows:

Stock | Investment Rating | Target Price (HKD)

Hong Kong Stocks

BYD (01211.HK) | Buy | 139 HKD

Leapmotor (09863.HK) | Buy | 66.7 HKD

CATL (03750.HK) | Buy | 594 HKD

Horizon Robotics-W (09660.HK) | Buy | 11 HKD

A Shares

BYD (002594.SZ) | Buy | 123 RMB

CATL (300750.SZ) | Buy | 450 RMB

Top Group (601689.SH) | Buy | 82 RMB

U.S. Stocks

XPeng (XPEV.US) | Buy | 27.7 USD