Auto parts companies rise as analysts see de-stocking cycle basically ended
STOCKS
Auto parts companies rise as analysts see de-stocking cycle basically ended
STOCKS

Auto parts companies rise as analysts see de-stocking cycle basically ended

 

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Since December 2022, the new energy battery industry chain started the initiative to reduce inventory and meanwhile, the withdrawal of government subsidies for NEV purchases from 2023 led to a significant slowdown in the growth of NEV demand, leading to falling operation rates across different links in the NEV industry chain in the first quarter of the year, Chasing Securities said a research note said that. 

However, the recent research showed that some companies in the industry chain started to slightly restock in April, and the broker believes that the industry’s de-stocking cycle has largely ended. 

Given the easing impact of short-term factors such as price cuts of conventional fuel cars, introduction of new battery technologies and falling cost, market demand will recover significantly in the second quarter and the industry chain will gradually shift from de-stocking cycle to re-stocking cycle, it said.