[CITIC Auto] Huawei Car Update: Improving Capital Conditions, August Catalysts Imminent

English summary

Seres, BAIC, and JAC, three A-share smart selection targets, experienced a long painful period in 26H1. Affected by factors such as intensified internal diversion within the HarmonyOS ecosystem and rising prices for storage and lithium carbonate, volume, price, and profit all faced significant pressure, compounded by liquidity being siphoned by AI for a long time. Recently, as market liquidity rebalances between AI and non-AI sectors, all three targets have rebounded 10%+. We believe that with continued liquidity rebalancing and the August new car catalyst season, a monthly-level rebound is expected. JAC: In August, MPV long and short wheelbase versions will be released and deliveries will begin. The current position has fallen back to the position in mid-2024 when no new products were released. BAIC BluePark: On August 5, the hardcore SUV will start small deposits and be officially released at the end of August. The current position has fallen back to the position when we first recommended it in 2024. Seres: The M9 high-customized version will be batch-delivered in August, and in 26Q3, M9 series deliveries are expected to be 35,000-40,000 units (with highly customized versions accounting for over 30%), which is expected to drive earnings from a loss in 26Q2 to profitability. Welcome to communicate~