Three logic - why is the auto parts industry still optimistic!

Three logic - why is the auto parts industry still optimistic!

First of all, let's look at the three main lines of the auto parts industry logic!

★ Domestic substitution wave

As trade friction brings strategic opportunities for the development of China's automotive related industries, it promotes the reshaping of the traditional automotive industry chain relationship, and the domestic alternative space for high-quality independent parts suppliers is broad!

★ The demand for automotive transformation is huge

China is a big country with a large population, and at present, China's automobile market still has a large room for growth. According to agency data, nearly 500,000 new energy vehicles were sold in June this year.

The wave of vehicle electrification + intelligence brings, in addition to the high prosperity and certainty of the power battery industry chain, but also makes the reconstruction of the value and supporting relationship of a large number of parts and components enterprises.

★ Performance reversal, the inflection point has arrived

At present, the performance of the parts and components sector has reached the bottom and is expected to rise. Previously due to the triple impact of raw material prices, chips, and international freight, the performance of the parts sector has been greatly affected, but the triple inflection point has arrived: raw materials to improve the cost, the chip inflection point and the industry to replenish inventory, optimistic about the freight decline next year, the parts industry is expected to usher in the overall market.

Under the role of multiple positive factors, the future auto parts industry is expected to continue high growth, long-term investment is expected to bring considerable benefits.

However, we also found that the stock elasticity of auto parts is relatively high, and the risk is relatively large, so how should retail investors grasp the market? We recommend keeping an eye on the industry leaders!