Caixin Auto Morning Report【February 28】

By the end of January, China’s total electric vehicle charging infrastructure (chargers) reached 20.698 million units, a 49.6% increase year-over-year

On February 27, the National Charging Infrastructure Monitoring Service Platform data shows that by the end of January 2026, China’s total electric vehicle charging infrastructure (chargers) reached 20.698 million units, a 49.6% increase year-over-year. Among them, public charging stations (chargers) numbered 4.801 million, up 31.2%, with the rated total power of public charging stations reaching 226 million kilowatts, and an average power of about 47.01 kilowatts; private charging stations (chargers) totaled 15.897 million, up 56.1%, with the installed electrical capacity of private charging stations reaching 138 million kVA.

Cailian News Automotive: As new energy vehicles accelerate development, the scale and quality of charging infrastructure have become key factors in determining their widespread adoption.

Domestic used car daily transaction volume from February 9 to February 14 was 65,800 units

On February 27, the China Automobile Circulation Association data shows that from February 9 to February 14, the domestic used car market exhibited typical pre-holiday trading characteristics, with an average daily transaction volume of 65,800 units, a 5.28% decrease compared to the previous week. Influenced by factors such as the Spring Festival return home rush, logistics suspension, and extended consumer car purchase decision cycles, the used car market usually enters a slow season in the week before the holiday. Additionally, some dealers, considering the approaching Spring Festival, chose to close early to reunite with family, further reducing the number of vehicles on sale and active dealerships. Although some dealers maintained customer flow through promotions, overall market activity has declined compared to the pre-holiday peak.

Circulation Association: This fluctuation aligns closely with the seasonal pattern of the used car market before the Spring Festival holiday in previous years.

Citigroup: Upgrades GAC Group A/H share target prices

On February 27, Citigroup released a research report stating that, considering advances in robotics technology and cooperation with Huawei, the target price for GAC H-shares was raised from HKD 3 to HKD 3.8, with a “Neutral” rating maintained; the A-shares target price was increased from CNY 7.2 to CNY 8.1, and the rating was upgraded from “Sell” to “Neutral.” The bank believes that after an 11% decline in A-shares over the past year, the current risk-reward appears balanced. Additionally, considering actual sales performance in 2025 and a conservative industry outlook for 2026, Citigroup lowered GAC Group’s earnings forecasts for 2025-2027 to a loss of CNY 8.56 billion, CNY 4.94 billion, and CNY 2.07 billion; lowered sales forecasts by 17-19% to 1.71 million, 1.74 million, and 1.81 million units; and reduced gross profit margin forecasts from 4.0%, 4.9%, and 5.1% to negative 4.0%, negative 1.6%, and 1.2%. Investment income from joint ventures was also cut from CNY 4.6 billion, CNY 4.5 billion, and CNY 4.2 billion to CNY 2.7 billion, CNY 2.9 billion, and CNY 3.4 billion.

Cailian News Automotive: GAC Group’s independent brand breakeven and the full rebound of joint ventures still require time.

Citigroup: CATL’s unit profit remains stable, weak stock price offers long-term investors a buying opportunity

On February 27, Citigroup released a research report stating that Zimbabwe’s lithium mine export ban could lead to higher lithium costs, negatively impacting battery profit margins. As a result, CATL’s stock price has been weak, but this presents a better buying opportunity for long-term investors. Analysts Jack Shang and others believe this concern is not new, as the short-term cycle of rising battery prices has shifted from demand-driven to cost-driven. Despite rising costs, they believe CATL’s net profit per watt-hour will remain stable at CNY 0.11, as most lithium costs can be passed downstream, and the company has the most comprehensive supply chain investments, which will enhance investment returns. Upcoming catalysts include management guidance after the March 9 annual report release and the potential restart of its Jiangxi lithium mine. In the short term, lithium producers are expected to continue outperforming, with Ganfeng Lithium being optimistic.

Cailian News Automotive: Since the beginning of this year, CATL’s secondary market stock price has experienced some adjustments.

Shenghong Co., Ltd.: Net profit of CNY 474 million in 2025, up 10.58% year-over-year

On February 27, Shenghong Co., Ltd. released its performance brief, reporting that in 2025, the company achieved total operating revenue of CNY 3.463 billion, a 14.07% increase; net profit attributable to shareholders was CNY 474 million, up 10.58%.

Shenghong Co., Ltd.: During the reporting period, revenue from electric vehicle charging and swapping products and power quality products increased significantly compared to the previous year, driving overall revenue growth for 2025.

Audi appoints new management team in China

On February 26, Audi announced that, starting April 1, 2026, Daniel Weissland will succeed as General Manager of FAW Audi Sales Co., Ltd. The current General Manager, Michael Arndt, will transfer to the position of Managing Director of Volkswagen Passenger Cars in Korea. Additionally, from June 1, Matthias Schepers, currently President of Volkswagen Group Japan and Managing Director of Audi Japan, will become Vice President of Sales and Marketing for Audi China.

Cailian News Automotive: Audi is consolidating its strategic position in China through a series of senior personnel appointments.

(Cailian News reporter Liu Yang compilation/commentary)