CLSA released a research report believing that the rapid growth of China's EV market will become history, and expecting that the CAGR of sales growth will slow from 60% over the past 5 years to 10% by 2030. This also explains why car companies are eager to gain market share before the industry landscape stabilizes.

Looking ahead to the coming months, CLSA noted that autos will be under pressure due to a price war, which is expected to last longer and be deeper. However, the broker believed that this will help resolve the issue of oversupply, and recent government intervention will also help limit the downside risks of industry profit margins.

It is believed that, once the dust settles, carmakers with cost advantages and leading overseas footprints will have more stable profit margins. Its sector top picks are GEELY AUTO (00175.HK) and BYD COMPANY (01211.HK).
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AASTOCKS Financial News
Website: www.aastocks.com

SG Top Picks
Stock & Type	Code	Strike(Call Level)	Last	Effective Gearing
GEELY (C)	17185	22.05 (-)	0.112	4.6 X
GEELY (C)	13152	18.51 (-)	0.124	5.4 X
GEELY (Bull)	65332	14 (14.5)	0.050	6.5 X
GEELY (Bull)	65192	13 (13.5)	0.072	4.5 X
GEELY (Bear)	60827	20.5 (20)	0.078	4.2 X
BYD (C)	15177	196.667 (-)	0.057	7.8 X
BYD (C)	17183	160.437 (-)	0.103	3.5 X
BYD (C)	15617	133.693 (-)	0.112	4.0 X
BYD (P)	16901	142.893 (-)	0.210	1.6 X
BYD (P)	16673	106.97 (-)	0.106	6.4 X
BYD (Bull)	60396	123.667 (125)	0.046	17.1 X
BYD (Bull)	54342	120.333 (121.667)	0.068	11.6 X
BYD (Bear)	57446	154.667 (153.333)	0.122	6.4 X
BYD (Bear)	57693	149.667 (148.333)	0.097	8.1 X
LI (C)	17186	138.98 (-)	0.150	3.3 X
LI (C)	27190	98.93 (-)	0.213	3.5 X
LI (Bull)	61740	97 (101)	0.028	7.8 X
LI (Bull)	57197	89.4 (93.4)	0.044	5.0 X
LI (Bear)	54688	144 (140)	0.066	3.3 X
XPENG (C)	14703	106.16 (-)	0.049	4.3 X
XPENG (Bull)	57448	66.5 (68)	0.070	10.3 X
TSLA (C)	10688	420 (-)	0.500	3.7 X
TSLA (C)	10591	300 (-)	0.820	3.8 X
TSLA (P)	10692	280 (-)	0.660	2.3 X
TSLA (P)	10604	190 (-)	0.116	3.8 X