In "The Big Banks," Citigroup: BYD and Geely's export volume further increases, and domestic automobile sales momentum rebounds

The report from Citibank indicates that high oil prices may lead buyers to prefer electric vehicles, especially in overseas markets; meanwhile, BYD (01211.HK) and Geely (00175.HK) saw further increases in export volumes in March, with year-to-date export volumes growing by 56% and 129%, respectively.

At the same time, it is understood that domestic sales momentum is also recovering, particularly in the mass market, where major automakers sold 1.1 million vehicles, down only 1% year-on-year. Channel data shows that the weekly sales of BYD, Geely Galaxy, and Leapmotor (09863.HK) increased by 10%, 10%, and 100%, respectively. The firm believes that the automotive sector's dynamics are improving, with a recovery in orders.

In terms of stock selection, the firm prefers BYD and Geely as the main beneficiaries of export growth and resilient domestic sales, with target prices of 130 yuan and 23 yuan, respectively, both rated as "highly confident to outperform the market."