CITIC Securities continues to be optimistic about the allocation value of leading car companies, recommending Geely, BYD, and XPeng

CITIC Securities International's research report pointed out that Geely Auto (00175.HK) subsidiary ZEEKR launched the all-new high-performance large five-seat flagship SUV ZEEKR 8X yesterday (16th) and started pre-sales, with a pre-sale price ranging from RMB 376,800 to RMB 516,800 (the same below). The company disclosed that within 38 minutes of starting pre-sales, small orders exceeded 10,000 units and continued to strive for 20,000 units, indicating strong market demand.

The firm considers that new car launches typically coincide with price or benefit adjustments, and it is expected that orders will further release after the official launch in April. It also believes that as the 9 series and 8 series product systems gradually improve, the company's high-end path is advancing towards a matrix approach.

CITIC Securities stated that the current pessimistic expectations in the automotive sector have been fully released, and valuations remain at historically relatively low levels. With the new car cycle and the catalysis of intelligence, it continues to be optimistic about the allocation value of leading car companies, recommending Geely (target price of HKD 32, rating "Buy"), BYD (01211.HK), XPeng-W (09868.HK), while also paying attention to Nio-SW (09866.HK) for short-term trading opportunities