The stock price of ZHIXING Automotive Technology has retraced, perhaps presenting a good opportunity

At a time when global stock markets are adjusting, the Hong Kong market, as an asset oasis, has shown super high resilience and ushered in a strong outbreak, with the Hang Seng Index achieving a "9-day winning streak". The enhanced market liquidity has further amplified emotions and stock price fluctuations, with Aito Car-Tech (01274) experiencing significant stock price adjustments during this process, attracting widespread attention from the market and investors.

According to the Securities Times APP, the direct trigger for this stock price volatility is Aito Car-Tech being included in the short-selling list. The Hong Kong Stock Exchange regularly adjusts the short-selling list to promote market liquidity enhancement and price discovery efficiency. Prior to this, Aito Car-Tech's stock price had tripled since its listing.

Despite being included in the short-selling list this time, the long-term value of Aito Car-Tech should still be taken seriously. Analysis of historical data of companies included in the short-selling list shows that stocks newly included in the list may experience price fluctuations in the initial period, but they often recover and achieve growth afterwards. This phenomenon indicates that the market's reaction to the short-selling list is often short-term and does not change the long-term value judgment of the company.

Aito Car-Tech is a leading domestic provider of autonomous driving solutions, with a management team all coming from international Tier1 companies, possessing leading technological innovation capabilities and large-scale commercialization capabilities. Currently, Aito Car-Tech has established cooperation with many well-known car manufacturers including Geely, Great Wall, Chery, and Dongfeng. In recent years, the company's self-developed high-margin products iDC and iFC series have injected new vitality into the company's development, while actively expanding into overseas markets and laying a solid foundation for exporting to more overseas markets through GSR verification. The company's excellent fundamentals have also attracted ratings from several top institutions including Deutsche Bank and Citigroup.

According to a research report by Deutsche Bank, Aito Car-Tech's performance in 2023 is in line with previous profit warnings, with a year-on-year gross profit growth of 9%. Especially in the field of autonomous driving solutions and product business, benefiting from the enhancement of company scale economy and the improvement of bargaining power with suppliers, the gross profit margin achieved year-on-year growth. At the same time, Deutsche Bank believes that despite facing price pressure from OEMs, Aito Car-Tech has maintained a good gross profit margin level through technological innovation and cost control.

In its latest tracking report, Citibank pointed out the strong order trend of Aito Car-Tech, especially the strong order volume from traditional partner ZEEKR and the increase in sales volume brought by award-winning safety design. Citibank further raised the company's performance forecast and raised the target price to HKD 90.10. Citibank expects 2024 to be a turning point for Aito Car-Tech to turn losses into profits, with a net profit of 500 million RMB expected to be achieved in 2026. For sales forecasts, Citibank has raised the sales forecast for 2024/2025 to 653,000 and 1.34 million units, reaching 2.21 million units in 2026.

In terms of the overall market environment, Aito Car-Tech is facing the blue ocean of rapid growth in China's new energy vehicles. In 2023, China's production and sales of new energy vehicles reached 9.587 million and 9.495 million units respectively, with year-on-year growth of 35.8% and 37.9%, and a market share of 31.6% In comparison, the production and sales volume of passenger vehicles in China in 2023 only increased by 9.6% and 10.6% year-on-year.

As a pioneer in the field of autonomous driving, ZingCar Technology's growth and investment value from a long-term perspective are self-evident. Looking ahead, with continuous technological advancements and the gradual maturation of the market, ZingCar Technology is expected to become a key driving force in the development of the smart car industry. For investors seeking to seize opportunities in the future automotive technology revolution, ZingCar Technology is undoubtedly an investment target worthy of long-term attention