0613 GMT - Investors remain relatively conservative on China's auto sector, DBS analysts write in a note. Most are underweight given slowing auto sales momentum, margin concerns stemming from rising battery costs, and limited near-term re-rating catalysts, they say. Valuation have been cut over the past three to six months, and investors are looking for bottom-fishing opportunities. They prefer higher-quality auto names offering structural growth drivers, particularly in exports and robotics, they add. Compared with automakers, auto part makers are seeing relatively stronger investor interest given they have more resilient earnings visibility and links to autonomous driving system and robotics, they say. DBS's top picks are Geely ad Leapmotor for China automakers and Hesai, Nexteer and Horizon Robotics for auto part makers.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
February 26, 2026 01:13 ET (06:13 GMT)
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