To The Moon

Several automotive stocks continued their gains in Hong Kong trading. At the time of writing, LEAPMOTOR (09863) rose 4.69% to HK$48.62, BYD COMPANY (01211) increased 4.38% to HK$107.2, LI AUTO-W (02015) advanced 2.75% to HK$70.9, and GEELY AUTO (00175) climbed 1.36% to HK$20.9. The ongoing high volatility in international crude oil prices has significantly enhanced the lifecycle cost advantage of new energy vehicles in overseas markets, further highlighting the global competitiveness of Chinese new energy products. Reports indicate that consumers in the Philippines and Indonesia have been queuing to purchase electric vehicles. Shenwan Hongyuan Group noted in a research report that rising oil prices reduce the relative operating costs of new energy vehicles, making them more attractive for comparable product quality. High oil prices are seen as having a clear positive effect on the overseas expansion of China's new energy vehicle sector. However, while higher oil prices boost demand for new energy vehicles through cost advantages, they also increase expenses for raw materials and shipping. Overall, the currently anticipated high oil prices are expected to clearly benefit the global rollout of Chinese new energy vehicles. If oil prices rise further into an irrational range, greater attention should be paid to macroeconomic risks rather than mid-level opportunities.