CLSA released a research report stating that high oil prices may lead buyers to prefer electric vehicles, especially in overseas markets. Both BYD COMPANY (01211) and GEELY AUTO (00175) saw further increases in export volumes in March, with exports growing 56% and 129% year-to-date, respectively. In terms of stock selection, the firm prefers BYD and Geely Auto as key beneficiaries of export growth and resilient domestic sales. It set target prices of HK$130 for BYD and HK$23 for Geely Auto, both with a "high conviction outperform" rating. Meanwhile, domestic sales momentum is also recovering, particularly in the mass market, with major automakers selling 1.1 million units. Channel data showed that weekly sales for BYD, Geely Auto's Galaxy series, and LEAPMOTOR (09863) increased by 10%, 10%, and 100% week-over-week, respectively. The report noted that the automotive sector's momentum is improving, with orders recovering.
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