In the first half of 2007, the growth of passenger vehicles in China continued unabated, and commercial vehicles also showed a good momentum of development. During the period, sales of passenger vehicles increased by 22.3% year-on-year, with a production and sales ratio of 97.9%. Sales volume of commercial vehicles increased by 25.9% year-on-year, and the sales ratio was 98.8%. Heavy trucks experienced blow-out growth, cumulative sales increased by 58.05% year-on-year, and sales of semitrailer tractors increased by 122.7%. The automotive industry, which is in a booming cycle, will be “stronger than the trend” in the second half of 2007.

On the whole, at the current valuation level, the overall valuation of the auto industry remains low, focusing on the long-term investment value of leading companies with international competitiveness and China's comparative advantages.

One reason why the steel industry is favored is that the overall performance of the steel industry has increased. According to the statistics of the Iron and Steel Industry Association, 77 large and medium-sized iron and steel enterprises included in the statistics of the Association for the first half of the year achieved a sales income of 921.26 billion yuan, a year-on-year increase of 34.89%, and a profit of 78.247 billion yuan, an increase of 108.75%. It can be seen that the profit growth of the steel industry is still visible. In the secondary market, the mid-term growth of individual steel stocks has also seen a general increase. It can be argued that the promotion of steel performance is part of the reason why the market is bullish on steel.

In addition, the integration opportunity of the steel industry is also worth looking forward to. At present, large domestic steel companies have strengthened cooperation. For example, Baosteel Group and Handan Iron and Steel Group, Baosteel Group and Baotou Steel Group have all cooperated. The future integration of the steel industry is still worth investing. Concern.

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