Automobile Industry 02 (Oct 15 - Apr 23)

[winston]

3 Auto Stocks That Have Slammed on the Brakes

General Motors (GM) was kicked to the curb on Wednesday along with a pair of other automakers

By Anthony Mirhaydari

Source: Investor Place

http://investorplace.com/2016/06/3-auto ... 0-j9JF96M8

[winston]

<Research Report>BofAML: PRC Automakers Remain Cautious about 2Q Sales; Top Picks Dongfeng, BYD

Bank of America Merrill Lynch, in its report, said it hosted investor meetings with the managements of GREATWALL MOTOR (02333.HK), SAIC GROUP, BYD COMPANY (01211.HK), YONGDA AUTO (03669.HK), TIANNENG POWER (00819.HK).

Surprisingly, the broker noted that automakers remain cautious about the 2Q auto sales outlook, which differs from the broker's view.

With the OEMs? view considered, the broker expected the sector?s valuation to lag until end-June, before the sector benefits from 3Q15?s low base effect.

On the positive side, automakers and dealers do not rule out replacement demand generating upside risks from 2016. In the broker's view, it believed replacement demand could last for 24 months, between 2016 and 2017, and benefit mid-high-ASP automakers such as GEELY AUTO (00175.HK), BRILLIANCE CHI (01114.HK), DONGFENG GROUP (00489.HK).

The broker believed Brilliance/Geely?s next re-rating catalysts should arrive by end-3Q16, after the new car models volumes ramp further. As such, the broker expected the short-term market sentiment to keep favouring Dongfeng Group on its attractive risk-reward if the May/June PV sales number is better than expected.

On the contrary, if 2Q conventional PV sales miss the broker's forecast, it expected BYD?s new energy vehicle sales growth to remain resilient. The broker rated Buy for Dongfeng Group and BYD.

Source: AAStocks Financial News

[winston]

7 Self-Driving Car Stocks to Buy for the Autonomous Revolution

Early investors in autonomous vehicles should enjoy enviable returns

By John Divine

Source: Investor Place

http://investorplace.com/2016/06/best-s ... 1YJJpF96M8

[winston]

Are EV Batteries Only Hype? Morgan Stanley vs JP Morgan

By Shuli Ren

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... jp-morgan/

[winston]

Wall Street is cranking out auto loans, and the dollar total is huge

by Jon Marino

The average monthly payment, around $500, is up to a record mark, according to a June report from the firm, and the industry's average loan size for new cars is also at an all-time high, having eclipsed the $30,000 mark.

The average U.S. transaction price for new, light vehicles was $33,652 in June, according to automobile price-tracking firm Kelley Blue Book.

Source: CNBC

http://finance.yahoo.com/news/wall-stre ... 59157.html

[winston]

3 Reasons Investors Hate Ford Motor Company (F) and General Motors Company (GM)

Despite positive Q2 numbers, GM and Ford stock continue to be punished by the market

By Wayne Duggan

Source: Investor Place

http://investorplace.com/2016/08/3-reas ... 6FXXLh96M8

[winston]

China Auto Sales Jump on Tax Incentives, Prior Year Comp

By Fan Yu

China’s sales surge becomes less promising due to last year’s dismal economic backdrop and the fact that most of the sales growth is driven by government stimulus.

The figures are artificially inflated due to government incentives.

Buyers of these small-displacement cars benefited from a 50-percent purchase tax discount, part of China’s auto stimulus plan put in place since October 2015 after three months of disappointing auto sales dating back to last July.

The incentive reduced the nationwide 10 percent purchase tax to 5 percent on new vehicles.

Of July vehicle sales, SUVs made up 35 percent of the total passenger vehicle sales, a 45 percent year-over-year jump.

Source: Epoch Times

http://www.theepochtimes.com/n3/2137761 ... ydhoAj9w.1

[winston]

4 Stocks That Will Accelerate Thanks to Driverless Cars

AAPL, F, MBLY and BIDU are good picks as the space gains momentum

By Laura Hoy

Source: Investor Place

http://investorplace.com/2016/08/driver ... 7-6mph96M8

[winston]

Auto Stocks Broadly Sought After; GAC GROUP, GREATWALL MOTOR Surge About 4% on Decent Sales

Auto stocks continued to be sought after across the board today, in particular GAC GROUP (02238.HK), which posted sales increase of nearly 35% yearly in August. The stock peaked at $11.42, hitting new high again since end-2010, and last traded at $11.36, up 4.2%.

DONGFENG GROUP (00489.HK), peaking at $8.85, last stood at $8.84, up 4.9%, on surging volume to 16.7 million shares. GEELY AUTO (00175.HK) drifted higher 1.8% to $6.81.

With annual increase of 25.4% in car sales for August, GREATWALL MOTOR (02333.HK) was reiterated at Outperform by Macquarie. The stock soared 3.9% to $8.15.

Shenzhen government launched NEV subsidy of no more than 60% of the car price. BYD COMPANY (01211.HK) leaped 2.9% to $55.55, hitting 15-month high. Its A shares also jumped over 2% to peak at RMB59.49.

POWER XINCHEN (01148.HK) recouped 250-day MA ($1.37). Peaking at $1.42, it last traded at $1.39, up 11%.

However, BRILLIANCE CHI (01114.HK) stayed flat at $9.44. BAIC MOTOR (01958.HK) inched down 0.1% to $7.6.

Source: AAStocks Financial News

[winston]

Will China Extend Its Tax Cut On Car Purchases?

By Shuli Ren

China’s automobile manufacturers have rallied by about a third since late last year when Beijing slashed ITS sales taxes on small passenger vehicles from 10% to 5%.

And Chinese consumers are responding to the tax incentives. In the first eight months this year, passenger vehicle sales jumped 13% from a year ago, on track to hit double-digit 10% growth for the full-year.

Credit Suisse last week downgraded Chinese auto stocks from Buy to Neutral, saying even with the tax cut extended, vehicle sales growth won’t be as stellar next year.

Meanwhile, automakers are facing a lot of pressure on their profit margins, due to:
(1) an increase in selling expenses as some car makers might subsidise the 2.5% tax cut difference from their own pocket,
(2) new energy vehicle makers’ price decline offsetting the 20% subsidy drop from 2017, and
(3) incremental growth in component costs due to tougher fuel efficiency requirements, which likely add up to around Rmb3,000 per vehicle in 2017.

Source: Barron's

http://blogs.barrons.com/asiastocks/201 ... purchases/