[Institutions: Seize the Structural Opportunity in the New Energy Vehicle Market, While Maintaining Caution] BOCI Securities believes that the adjustment of the new energy vehicle purchase tax reduction policy in 2026 is expected to stimulate concentrated consumer purchases before the end of 2025. Coupled with automakers' year-end sales push and pre-Spring Festival inventory buildup, this is expected to offset the impact of some provinces raising the threshold for replacement subsidies. However, after the concentrated sales volume in the fourth quarter of 2025, the first quarter of 2026 may return to the seasonal off-season. It is recommended to seize the structural opportunity while maintaining caution and paying attention to short-term fluctuations. Huaxin Securities believes that on the supply side, battery and OEM manufacturers are continuously launching new products, demand is responding positively, and policies are continuously being strengthened. In terms of price, the industry chain has experienced a significant price decline, capital expenditure is continuously shrinking, and the supply and demand pattern is constantly optimizing. Industry associations and companies in the industry chain are actively optimizing capacity and supply to strive for price protection and corporate profitability. Overall, the price of the new energy vehicle industry chain is at a bottom, with prices more likely to rise than fall. Demand is resilient, and adjustments present good opportunities for investment. The valuations of core companies in the industry chain are at historically low levels, and high-quality companies in the industry chain are favored.
