JP Morgan: Downgrades LI AUTO (02015) rating to "underweight" with preference for GEELY AUTO (00175) and Sinotruk Jinan Truck (03808)

JPMorgan Chase released a research report stating that the performance of the Chinese automotive market this year will exhibit a mixed trend between 2018 and 2025: 1) Due to the overall slowdown in the passenger car market growth rate to negative territory (similar to 2018), the industry's performance for the whole year may be relatively weak; 2) However, driven by the release of new car models, seasonal trend fluctuations, and changes in profit expectations (similar to 2025), market fluctuations throughout the year may intensify. Whether absolute or relative returns can be achieved ultimately depends on whether companies can exceed profit expectations, which will be more challenging against the backdrop of rising costs. Taking into account the above factors, the bank's top picks are GEELY AUTO (00175) and Sinotruk Jinan Truck (03808); at the same time, the bank believes that BYD COMPANY (01211), LEAPMOTOR (09863), XPENG-W (09868), and NIO Inc. Sponsored ADR Class A (09866, NIO.US) may present worth-watching investment opportunities in March of this year or the second quarter. On the other hand, the bank has downgraded LI AUTO-W (02015) to "underperform."