On July 6, the Shanghai Composite index continued to surge, rising 5.71% to close at 3332.88 points. Shenzhen component index rose 4.09% and gem index rose 2.72%. The combined turnover of the two cities exceeded 1.5 trillion yuan, a five-year high. Among them, the automobile industry (BK0481) rose 3.62%, the highest in nearly a year.

Previously, the China Association of Automobile Manufacturers predicted that the sales volume of the automobile industry in June would reach 2.28 million units, up 11% and 4% respectively compared with the previous month. The cumulative sales volume in January-June was 10.24 million units, down 17% year on year, showing a V-shaped reversal trend in the industry. As a result, a number of securities institutions said that although the auto industry is still at the bottom of the cycle, but the recovery has been established, the timing of the allocation has arrived.

To be specific, the stocks of vehicle enterprises with an increase of more than 5% in the automotive sector yesterday were: Jiangling Motor (000550) up 8.11%, Great Wall Motor (601633) up 6.29%, SAIC Motor (600104) up 5.95%, FAW Jiefang (000800) up 5.15%, and Changan B (200625) up 5.09%. As the leading stock, the performance of the above auto companies have their bright spots recently.

Jiangling production and marketing double growth, enterprise profit momentum is flourishing

Jiangling Automobile closed yesterday at 15.19 yuan per share, a new high after the Spring Festival. Against the backdrop of declining overall market sales, the production and sales of Jiangling Automobile in June continued the rising trend in April and May, with the output surging 54.51% year-on-year to 35110 units and the sales surging 66.71% year-on-year to 39192 units. Jac's net profit in the first quarter rose 176.10 per cent year on year, and the company expects net profit in the first half of 2020 to rise as much as 253 per cent year on year to 208 million yuan.

Auto industry analysts think, Lin contrarian growth in jiangling automobile sales and profit, thanks to its clear positioning and right of the long-term planning management, such as to carry out the "whole series products new product planning", "new technology cycle plan", intelligent snatched & electronic technology innovation strategy of "355" and "135" route, etc., in addition, jiangling automobile internal reform and achieve the goal of the authors efficiency.

Great Wall's sales hit a record high in May, continuing its dominance of pickup trucks

At 8.95 yuan per share, Great Wall motor has been climbing in the last four trading days, selling 81,901 cars in May, up 31 percent and 1 percent respectively month on month, the highest sales volume this year. Among them, the sales volume of Harvard brand in May was 51,915 units, with a year-on-year increase of 20%, and that of Great Wall pickup was 22,543 units, with a year-on-year increase of 178%, accounting for nearly 50% of the market, leading the market in the true sense. Industry insiders said: "Great Wall auto pickup truck accounted for nearly 50% of the absolute dominant position in the industry, the first three models are all Great Wall Auto. In general, the maximum market share for passenger car companies is about 10 per cent."

However, the cumulative sales volume of Great Wall Motor is still in a negative state this year, with sales volume of 313,061 units in the first five months, down 27.24 percent year-on-year. Great Wall Motor has previously said that it will continue to focus on product category and technology research and development, actively embrace industrial innovation and reform, and deeply integrate tradition and innovation, so as to inject new vitality into the transformation and innovative development of China's auto industry. Not only that, the pace of internationalization of Great Wall motor is also advancing steadily with the breaking ground of beam automobile factory in Zhangjiagang.

Saic sales are now V-shaped reversal, securities institutions buy rating

Saic yesterday received seven institutional buy rating records, as of yesterday's close, at 19.76 yuan/share. In June, SAIC motor sold 479,464 vehicles, an increase of 2.77% over the same period last year. Although the accumulative sales volume from January to June was still down 30.24% over the same period last year, the rebound momentum has begun to show. Reviewing the performance of the first quarter of this year, THE total revenue of SAIC was 105.947 billion yuan, down 47.08% year-on-year, and the net profit attributable to mother was 1.121 billion yuan, down 86.42% year-on-year.

However, SAIC has made a lot of moves recently. First, it plans to spend 1.902 billion Hong Kong dollars to acquire China Car Rental for the travel sector, and then it is expected to spend no more than 3.034 billion yuan to buy back shares for equity incentive. Saic believes that buyback is the confidence in the company's future sustainable development and the recognition of the company's value. At the same time, it focuses on the long-term and sustainable development of the company, safeguards the interests of shareholders and strengthens investor confidence.

Liberation of the continuation of heavy card leading position, the future of new projects can be expected

Faw Jiefang has been popular with investors since its listing and is often compared with SINOtruk, with its shares now trading at a near one-year high of 12.86 yuan. Faw Jiefang ranks first in the sales volume of heavy trucks in the first half year of 2020, reaching 228,600 units in total, with a year-on-year growth of 32% and a market share of nearly 30%.

Moreover, FAW Jiefang has also signed cooperation agreements with changchun Municipal Government and the Management Committee of Changchun Automobile Economic and Technological Development Zone to implement the project of enhancing the competitiveness of the truck plant, including the new J7 intelligent assembly line project, the intelligent detection capability improvement project of vehicle off-line and the anti-corrosion project of truck plant chassis. The total investment is expected to be 1.125 billion yuan, which will be put into operation in December 2021. This project can increase the production capacity of 50,000-80,000 vehicles per year for FAW Jiefang. In this regard, some media analysis pointed out that the switch of national six accelerated the elimination of old and used trucks, the heavy truck market demand is strong, coupled with faW Jiefang in the heavy truck industry's strong RESEARCH and development and product competitiveness, faW Jiefang after the product listing market share may continue to increase.

Chang 'an's sales rose sharply in May and its earnings improved in the first quarter

Changan shares broke through a two-year high and closed at 12.55 yuan yesterday. In May, Changan automobile sold 1740.12 million vehicles, up 54% year-on-year and outperforming the industry's 7% level, although its cumulative sales for the january-May period still fell to 636,586 vehicles, down 6.29% year-on-year. Financial data show that in the first quarter, Chang 'an Automobile realized revenue of 1156,407,463.34 yuan, down 27.76% year-on-year. Although the non-net profit attributable to shareholders of the listed company was a loss (-179,332,817.62 yuan), it improved 17.02% year-on-year.

The company said the launch of changan Ford Explorer and Uni-T will add new momentum to sales growth, adding that it expects sales growth to continue to outpace the industry, with a quarter-on-quarter increase.