CITIC Securities: Auto Export Theme Still Favored; Robotics and Smart-Driving Offer Value

CITIC Securities said a ceasefire agreement in the Middle East could help repair market sentiment, according to 36Kr. In a research note, the brokerage said China’s auto sector in May showed pressured domestic demand but strong exports. It said the sector has seen a sharp pullback and base-building since late April, and that pessimistic expectations for domestic demand may already be priced in. The note added that the recent decline was not driven by clear fundamental negatives, but mainly by liquidity factors such as fund rotation. CITIC Securities said it remains positive on the auto “going global” theme for the full year, and added that select bottoming “alpha” names in robotics and intelligent driving offer attractive valuations, with mid-term industry trends expected to continue playing out.