On Tuesday, A-shares continued to adjust, and the three major indexes all hit new lows in intraday. As a strong sector before, the automobile industry chain has also been declining recently, and the automobile vehicle (-0.97%), car services (-0.).94%) and auto parts (-047%) on Tuesday**. Since November 29, about 10% of the whole car has been used, and more than 7% of auto parts.
The two leading companies are at a new low
As far as the first is concerned, as the two major benchmarks of the automobile industry chain, CATL and BYD have also been declining recently, with a total of 59190,000 shareholders were depressed. CATL on Tuesday although ** 138%, but still hit 146 intradayA new low of 27 yuan. As of December 19**, CATL's weekly ** has fallen for 7 consecutive years. Since the beginning of this year, CATL has fallen by 3139%。In terms of market capitalization, CATL's latest is 655.5 billion yuan, compared with 960.9 billion yuan at the end of 2022, evaporating more than 300 billion yuan. In the third quarter, the number of shareholders of CATL was 23330,000 households. BYD also fell all the way, **056%, 186 intradayA new low of 16 yuan. Since the beginning of this year, BYD has accumulated **2651%。The latest market value is 547.3 billion yuan, compared with 748.1 billion yuan at the end of 2022, evaporating more than 200 billion yuan. At the time of the third quarter, the number of shareholders of BYD was 35860,000 households.
Strong stocks flash crashed and stopped
In addition to the poor performance of leading stocks, many strong stocks in the auto industry chain also experienced flash crashes on Tuesday. The typical is Dongan Power, the stock opened at the price limit on Tuesday, although the limit was opened many times during the session, but it was still closed at about 13:41. ** When there is still 620,000 hands sealed to close the limit, according to the latest price of 1683 yuan, about 100 million yuan. Previously, because of the cooperation between Huawei and Changan Automobile, and because Dongan Power and Changan Automobile are both holding subsidiaries of China Changan Automobile Group, Dongan Power has been speculated by the market. Since the stock price limit began on November 9, Dongan Power has risen by nearly 190% at the most, and it has also recorded 9 consecutive boards from November 23 to December 5. Of course, during the sharp rise in stock prices, Dongan Power said more than once that the company was not involved in the cooperation between Huawei and Changan Automobile. 
The flash crash also included Shenglong shares, which followed Monday's daily limit, but on Tuesday it was 174% opened significantly lower, dived quickly after the opening, hit the fall limit about 2 minutes later, and then ran near the fall limit price, and closed the fall limit at around 13:29. **When the number of single hands is up to 260,000 lots, at the latest price of 4488 yuan calculation, about 1200 million yuan. Because the company through Tsingshan Industry, Chongqing Xiaokang and other supporting electronic oil pumps and other products for Cialis, and access to the project designation, coupled with the recent very hot question, as well as the market set off the "dragon generation" boom, as the domestic power system pump products leader Shenglong shares are out of control, September 28 began to record 14 boards, since then the stock price has hit a record high and hit a record high of 5597 yuan is the most in history, and the maximum increase during the period is more than 410%. 
Auto stocks were collectively lower
In addition to the above-mentioned **, there are many automobile industry chains ** sharply lower on Tuesday, auto parts sector in Anhui Phoenix, Shenda shares, Bohai Automobile, Quanchai Power, Shanghai auto parts, Chunxing Seiko, Tianqi mold, Su Changchai A, Shanzi shares and so on also fell first. 
In the automobile sector, Changan Automobile, King Long Automobile, Yaxing Bus, and Zhongtong Bus fell by more than 2%;Ankai Bus, Dongfeng Motor, BAIC Blue Valley, etc. also fell highly. 
The auto sector remains bullish
Although the overall automotive industry chain has weakened recently, from a comprehensive market point of view, the voice of continuing to be optimistic about the automobile industry chain still has the upper hand, and the reasons are mainly the following four aspects:
First, the sales of automobiles, especially new energy vehicles, are still hot. According to the data disclosed by the China Association of Automobile Manufacturers, in the first 11 months of this year, car sales reached 2,69380,000 units, a year-on-year increase of 108%。Among them, the sales volume of new energy vehicles was 83040,000 units, a year-on-year increase of 367%。Looking at November alone, the sales volume of new energy vehicles was 10260,000 units, a year-on-year increase of 30%, with a market share of 345%。
Second, although the auto sector has experienced a lot of gains, the valuation of the sector still tends to be reasonable. According to data from Oriental Wealth Choice, the latest price-to-earnings (TTM) ratio of the auto sector is 2509 times, and the P/E percentile is 5544%, i.e. the current valuation is 55 percent higher than historically44% of trading days are expensive. and 38 for the week of July 29, 202201 times the valuation, down more than 30%. 
Third, the performance of the automobile sector continued to improve. Taking the automobile sector as an example, the total net profit attributable to the parent company in the first three quarters of this year was 5321.7 billion yuan, compared to 396. in the same period in 20225.4 billion yuan, a year-on-year increase of 342%。For example, BYD earned 213 in the first three quarters6.7 billion yuan, a year-on-year increase of 12947%。The performance of Yutong Bus increased by 703 year-on-year09%。FAW Jiefang, JAC, and King Long Automobile have obviously turned around their losses. Fourth, institutions are increasing the allocation of the automobile sector. Taking the public offering ** as an example, the allocation of the auto sector has been steadily improved since 2019. In the third quarter of this year, the proportion of the industry allocation of publicly offered ** automobiles was 409%, which is 137% compared to an increase of 272 percentage points. 
Institutions are optimistic about the auto sector
Many institutions have also expressed their optimism about the auto sector. Guotai Junan believes that from the perspective of car ownership per 1,000 people, China's level (226 cars per 1,000 people) is about the same as that of Brazil in 2015 and Russia in 2009. In 2015, the number of cars per 1,000 people in the United States has exceeded 800, and in Germany in 2022, the number of cars per 1,000 people will be 630, nearly three times that of China. Caixin ** said that with the continuous accumulation of the policy effect of the country's stable economic growth, superimposed on local car purchase subsidies, ** activities and other measures and the year-end tail-end effect, the demand will continue to grow in the fourth quarter, the automotive industry is expected to better complete the annual target, and the penetration rate of new energy vehicles is expected to further refresh the historical record. CITIC ** believes that CITIC ** said that the market demand for new energy vehicles at home and abroad is improving, and Tesla's new car Cybertruck and ModelQ are about to be launched, which is worth paying attention to. At present, the overall valuation of the sector is at a historical low, and the industry is expected to usher in a reversal, with allocation value, and high-quality leading enterprises in all links with global competitiveness are recommendedIt is for investors' information only and does not constitute investment advice
Article**: Oriental Wealth Research Center).