$CHERY AUTO(09973.HK)

Chery Automobile (9973.HK) has been in the spotlight this week with plenty of news. First, the estimated wholesale sales of new energy passenger vehicles in China reached 1.61 million units in October, a 16% year-on-year surge. New energy automakers like Chery even set a record high in wholesale sales, which is undoubtedly a positive signal for the stock price. Additionally, Japanese auto parts companies recently visited independent brands like Chery to seek cooperation, reflecting both the pressure on Japanese automakers' market share in China and the growing global influence of China's automotive supply chain. More notably, Bank of America Securities initiated coverage on Chery with a "Buy" rating and a target price of HK$45, mainly optimistic about the company's profit growth driven by rising EV penetration and premium model launches in the coming years. Coupled with the newly launched pre-sales of the Tiggo 8, which is expected to capture a market share in the 100,000-150,000 yuan range, Chery's momentum remains strong in the short term amid multiple positive factors.