Zhitong Financial APP learned that Guojin Securities released a research report saying that the popularity of new products in the world is more to drive the expansion of the smart tram market segment than competition. The bank believes that the auto industry will enter the era of great integration, smart driving singularity time is coming. Under the trend of separation of hardware and software, the gap between smart drivers of car companies brings demand for cooperation. The intelligent speed of automobile enterprises in the future-the clearing speed of oil vehicles will be accelerated. At the current time, the whole vehicle side suggests to pay attention to the car-building new power car enterprises with both hardware and software strength and first-mover advantage. In addition, in November S7, December M9 is expected to re-question the M7 market heat, and then exceed market expectations, pay attention to Huawei and its industrial chain.

The main points of Guojin Securities are as follows:

Huawei's entry into the mid-and high-end tram market is expected to accelerate tram penetration in various market segments.

At present, Huawei's core is in the 20-500000 mid-and high-end market. We estimate that in the 20-500000 price range, sales in 23 years are expected to be 7.88 million vehicles, a year-on-year increase of + 16.6%. The market is growing significantly. Market pattern: 1) tram: Tesla, Inc., NIO Inc., XPeng Inc., ideal and other intelligent tram brands, leading performance; 2) oil car: BBA traditional luxury car hinterland. Huawei brings out-of-the-circle effect by virtue of strong brand strength, technology accumulation and product power, awakening consumers' demand for trams and accelerating the replacement of oil and electricity.

The popular styles of new products in the world are more likely to drive the expansion of the market segment of smart trams rather than competition.

Huawei strong brand strength triggered out of the circle, smart driving exceeded expectations-active and passive safety outstanding performance attracted fuel car consumers to trams. In the early days, Huawei occupied traffic and competed with friendly firms to a certain extent, but after the price adjustment of competitors, the customer base expanded, order sales were boosted than before, and the lower market share was accelerated, thus promoting the penetration of smart trams as a whole.

Cyrus asked: M7/M9 sales backbone, the follow-up is expected to launch more highly competitive products.

The M7 model fell in the highly competitive 20-400000 price range and still received hot-style orders. And about 60% of the orders are priced at 309800 smart drivers. The products with strong product power at this price are ideal L7, NIO Inc. ES6, and oil truck Audi Q5L, with monthly sales of 10 to 14000. M9 price is expected to fall in the 40-600000 price range, with two versions of extended range and pure electricity. The main models at this price are ideal L9 (extended range), NIO Inc. ES8 (pure electricity), Mercedes-Benz GLC, BMW X5, etc., with monthly sales of 8k ~ 10,000 units.

Huawei-Chery: the new product is expected to expand the pure electricity in the high-end model market.

Wisdom S7 covers the large sedan market in the range of 20-300000, with fierce competition but large market scale. XPeng Inc. P7, BYD Han EV/ Seal, Tesla, Inc. Model 3, Polar Krypton 001, NIO Inc. ET5/ET5T and so on sell about 40 to 50 000 units per month. The market has a large scale of 120000 plus, and there is still a lot of room for penetration. EHY is expected to be in the 25-350000 yuan pure electric SUV market, with competitors such as Tesla, Inc. Model Y, XPeng Inc. G9, SAIC Zhiji LS6 and NIO Inc. ES6, etc., with more room for penetration.

Huawei-Jianghuai: car-MPV at the same time, hold high to shape the new luxury of domestic intelligent travel.

Since 13, the share of SUV and MPV has continued to grow, and the car market has been squeezed. In the past three years, the supply and demand of the MPV market has increased significantly, with more than 300000 MPV CAGR + 44%. The supply of MPV has increased in the past 23 years, with a year-on-year increase of 34.8% from January to July. With the introduction of new cars, the MPV market is growing faster. The market capacity of 80-900000 MPV is about 24000 vehicles, and it is expected that there will still be an increase of 200000 vehicles in 50-800000.

Investment advice:

The rise of Huawei is expected to accelerate the penetration of the tram market. Huawei enters each price-power-segment market through different models, which is expected to drive the penetration of multiple market segments. 20-500000 yuan, with expected sales of 7.88 million vehicles in 23 years, a year-on-year increase of 16.6%. The 20-300000 car market is mainly dominated by BYD, North and South Volkswagen, Tesla, Inc. and two Toyota, with an annual market size of 1.5 million vehicles. 50-800000 MPV, there is expected to be an incremental market of 200000 vehicles.

The automobile industry will enter the era of great integration, and the moment of smart driving singularity is coming. Under the trend of separation of hardware and software, the gap between smart drivers of car companies brings demand for cooperation. The intelligent speed of automobile enterprises in the future-the clearing speed of oil vehicles will be accelerated. At the current time, the whole vehicle side suggests to pay attention to the car-building new power car enterprises with both hardware and software strength and first-mover advantage. November Wisdom S7, December M9 is expected to re-question the M7 market heat, and then exceed market expectations. It is suggested that we should pay attention to Huawei and its industrial chain, such as 601127.SH, 600418.SH, 000625.SZ, etc., and spare parts should pay attention to seats, smart lights, AR-HUD, light screen and so on. Such as Xingyu shares (601799.SH), Shanghai Light shares (605333.SH) and so on.

Risk Tips:The progress of intelligence is not as expected, the landing time of L3 regulations is not as expected, and the market penetration of smart cars is not as expected.