Core Viewpoint - Zhongyin International's report indicates that Geely Automobile's Q2 revenue increased by 7.3% quarter-on-quarter, with a core net profit of 3.2 billion yuan, roughly in line with expectations [1] Company Performance - Geely is expected to continue narrowing the gap with current electric vehicle leaders due to its expanding domestic market share, upcoming overseas expansion, and leadership in smart electric vehicle technology [1] - The firm maintains its 2025 net profit forecast at 15 billion yuan while raising the 2026 net revenue forecast by 13% to 20 billion yuan, reflecting upward adjustments in Galaxy series and overseas sales forecasts, as well as improved profit margin prospects from the "One Geely" strategy and scale expansion [1] Valuation and Investment Outlook - The report highlights that Geely's current valuation is significantly discounted and does not fully reflect its potential to challenge BYD's dominance in the foreseeable future [1] - The "buy" rating is reiterated, with the target price raised from 29 HKD to 32 HKD [1]

Core Insights - The article highlights the significant growth in global new energy vehicle (NEV) sales, with a 30% year-on-year increase in Q2 2025, reaching 4.868 million units sold [2][8] - The market share of electric vehicles (EVs), including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), is expanding, accounting for 29% of total global car sales in the same period [2] BEV Market Summary - BEV sales reached 3.28 million units, marking a 39% year-on-year growth [5] - BYD leads the BEV market with an 18.3% market share and a 43% increase in sales [6] - Tesla, while maintaining second place, experienced a 14% decline in overall sales due to underperformance in key markets [6] - Geely holds the third position with a 6.4% market share, while Leapmotor and XPeng both surpassed 100,000 units in quarterly sales for the first time [6] PHEV Market Summary - PHEV sales totaled 1.587 million units, reflecting a 15% year-on-year increase [7] - BYD remains the leader in the PHEV segment but saw a 12% decline in sales, reducing its market share to 28.9% [7] - Li Auto and AITO have increased their market shares to 7.4% and 6.2%, respectively, indicating strong competition [7] - The introduction of new models by BYD's sub-brand Denza has led to a 41% increase in sales, allowing it to enter the top ten for the first time [7] Market Outlook - The global NEV sales forecast for 2025 is projected at 19.7 million units, a 21% increase, with growth expected to slow to 14% in 2026 [8] - In the U.S. market, the expiration of EV subsidies by September 30 may hinder future growth prospects for the electric vehicle industry [8]

Group 1 - The core viewpoint of the articles highlights the collaboration between Geely Holding and the Chengdu World Games, emphasizing the provision of smart and green transportation services for the 2025 World Games [1][2] - Geely has delivered nearly 500 smart new energy vehicles for various functions during the event, including torch relay and guest transportation [1] - The launch of Geely's fourth low-orbit satellite enhances the smart transportation capabilities by providing high-precision positioning and emergency satellite communication services [1] Group 2 - Geely Holding has become the official partner for the 2025 World Games, continuing its role in major international sports events after previous partnerships with the Hangzhou Asian Games and Harbin Winter Games [2] - The company focuses on a comprehensive transportation solution based on the principles of "technology, green, and vitality," honoring the spirit of sports [2] - Geely and the Chengdu organizing committee hosted the Geely National Sports Meeting to promote the idea of "national participation in sports," fostering the spirit of the World Games among citizens [2]

Investment Rating - The report maintains a "Recommended" investment rating for Geely Automobile [1][8] Core Views - The company achieved significant cost reduction effects, but still faces challenges in high-end market positioning [1][8] - In the first half of 2025, Geely's revenue reached 150.3 billion yuan, a year-on-year increase of 27%, while net profit attributable to shareholders decreased by 14% to 9.29 billion yuan [4][8] - The company aims to increase its annual sales target to 3 million units for 2025, reflecting strong demand for its economy models [7][8] Financial Performance Summary - Revenue projections for Geely are as follows: 2023A: 179.2 billion yuan, 2024A: 240.2 billion yuan, 2025E: 320.5 billion yuan, 2026E: 371.0 billion yuan, 2027E: 410.9 billion yuan, with year-on-year growth rates of 21.1%, 34.0%, 33.4%, 15.7%, and 10.7% respectively [6][12] - Net profit projections are: 2023A: 5.3 billion yuan, 2024A: 16.6 billion yuan, 2025E: 15.9 billion yuan, 2026E: 16.7 billion yuan, 2027E: 19.8 billion yuan, with year-on-year growth rates of 0.9%, 213.3%, -4.0%, 4.6%, and 18.3% respectively [6][12] - The gross margin is expected to improve gradually, reaching 17.4% by 2027, while the net profit margin is projected to stabilize around 4.8% [6][12] Sales and Market Share - Geely's market share exceeded 10% for the first time in the first half of 2025, with a significant increase in sales of the Galaxy model, which saw a 232% year-on-year growth [7][8] - The company reported a total of 54.8 million units sold in the first half of 2025, with a notable performance in both fuel and electric vehicles [7][8] Cost Management and Profitability - The average selling price (ASP) per vehicle decreased by 12.9% to 95,500 yuan, while the gross margin slightly declined by 0.3 percentage points to 16.4% [7][8] - The net profit per vehicle increased by 37% to 4,724 yuan, with the core net profit margin improving to 4.4% [7][8] Future Outlook - The report adjusts the profit forecast for Geely, estimating net profits of 15.96 billion yuan for 2025, 16.70 billion yuan for 2026, and 19.76 billion yuan for 2027, reflecting a positive outlook despite competitive pressures [8][12]

Core Viewpoint - Geely Automobile's net profit performance in the first half of this year is robust and meets expectations, with positive outlooks for future growth driven by new models and market acceptance [1] Financial Performance - Geely's net profit for the first half of the year is stable and aligns with forecasts [1] - The target price has been raised by 22% to HKD 26.4, maintaining an "outperform" rating [1] Future Projections - Earnings estimates for 2025-2026 have been increased by 28% and 4% respectively, reflecting confidence in new model production and market acceptance [1] - The company is expected to see significant benefits from its new product lines, particularly in hybrid and export markets, starting in 2025 [1] Market Dynamics - Short-term profit margin pressures for Geely are gradually easing, supported by government policies that are boosting the automotive market, especially for products priced between RMB 100,000 to 150,000 [1] - Anticipated sales increases in 2025 will allow the company to share more platforms and powertrains across its brands, leading to cost savings in production [1]

Macro Strategy - The report discusses potential space for consumption growth despite challenges in the "old-for-new" policy, highlighting three supporting factors: a gradual recovery in restaurant growth, the release of birth subsidies starting in August, and the impact of consumer loan interest subsidies [1][7] - July economic data shows a mixed picture, with industrial value-added growth at 5.7% year-on-year and retail sales growth slowing to 3.7% [7][8] - The report anticipates a rebound in consumption growth in the second half of the year, driven by restaurant recovery and subsidies [7] Fixed Income - The report covers the issuance of Kai Zhong Convertible Bonds (113698.SH) with a total issuance scale of 308 million yuan, aimed at funding a new smart home appliance manufacturing base [2][9] - The bond has a YTM of 2.19% and a maturity of 6 years, with a conversion price of 12.7 yuan per share [9][10] Industry Analysis Huari Precision (688059) - The company reported a revenue of 519 million yuan in H1 2025, a year-on-year increase of 26.48%, and a net profit of 85 million yuan, up 18.80% [3][11] - The company maintains a profit forecast of 157 million, 211 million, and 273 million yuan for 2025-2027, with a current dynamic PE of 38, 28, and 22 times respectively [11][12] Geely Automobile (00175.HK) - Geely's Q2 2025 revenue reached 77.79 billion yuan, with a net profit of 3.62 billion yuan, aligning with expectations [4][13] - The company has revised its net profit forecast for 2025-2027 to 15 billion, 22.1 billion, and 29.5 billion yuan, with corresponding PE ratios of 12, 8, and 6 times [13] Changjiang Electric Power (600900) - The company aims for a power generation target of 300 billion kWh in 2025, with net profit forecasts of 35.03 billion, 36.72 billion, and 37.09 billion yuan for 2025-2027 [5][14] - The report highlights a stable dividend policy with a minimum payout ratio of 70% for the next five years [14][15] Chongqing Beer (600132) - The company reported H1 2025 revenue of 8.839 billion yuan, a slight decline of 0.24%, with a net profit of 865 million yuan, down 4.03% [16][17] - The report notes a resilient performance from brands like Lebao and Wusu, despite a challenging market environment [16][17] Yihua Da (301029) - The company achieved H1 2025 revenue of 1.461 billion yuan, a year-on-year increase of 18.70%, driven by strong demand in the new energy and automotive sectors [18] - The profit forecast for 2025-2027 is maintained at 553 million, 665 million, and 791 million yuan, with a dynamic PE of 29, 24, and 20 times respectively [18]

Summary of Geely Automobile Conference Call Company Overview - **Company**: Geely Automobile - **Industry**: Automotive, specifically focusing on electric and hybrid vehicles Key Points and Arguments Financial Performance - In Q2, Geely achieved an operating profit of 285 million RMB, marking the first positive result, although the total loss for H1 was 774 million RMB [2][3] - Gross margin improved to 20.5%, with Zeekr brand's vehicle gross margin around 21% and Lynk brand's margin increasing from 11.1% in Q1 to 14% in Q2 [2][3] - The net loss for H1 was approximately 1.1 billion RMB, significantly reduced from 7.7 billion RMB in the previous year [3] Product Development and Launches - Geely plans to launch several new models in H2, including the Lynk 10 and various updated models (07, 08, 01, 09) focusing on smart technology and electric systems [2][5][7] - The Zeekr brand will introduce the 9X series, utilizing super electric hybrid technology and a 900V platform, marking a significant technological upgrade [2][6] - The new Galaxy series will also be launched, emphasizing smart technology across all sub-brands [2][7] Sales and Market Strategy - Geely's H1 export volume was 184,000 units, a 7.7% decline year-on-year, but other markets saw over 40% growth [2][8] - The company expects a minimum 30% increase in export volume in H2 compared to H1, with a year-on-year growth of 20-30% compared to last year [2][8] - The target for H2 is to sell nearly 80,000 new energy vehicles, aiming for a 90% increase [4][9] Cost Management and Efficiency - The merger of Zeekr and Lynk has led to significant cost reductions, with R&D expenses decreasing from 2.9 billion RMB in Q1 to 2.1 billion RMB in Q2 [3] - The company aims to continue optimizing costs through further synergies and integration [3] Technological Advancements - Geely is focusing on AI integration across all vehicle systems, enhancing self-driving, cabin experience, chassis, and power systems [4][17] - The company has developed a comprehensive AI strategy, including a significant increase in computing power for autonomous driving solutions [14][15] Future Outlook - Geely believes all product lines are now profitable, indicating a strong competitive position in the market [13] - The company is prepared to adapt to market changes, including potential policy shifts affecting the electric vehicle sector [25] Geopolitical Considerations - Geely is taking a cautious approach to international expansion, leveraging partnerships to mitigate risks associated with geopolitical changes [10] Taxation and Financial Management - The increase in tax expenses in Q2 was attributed to specific financial reporting details, including dividend distributions [11][12] Additional Important Insights - The Lynk 900 model has significantly boosted the brand's profitability and market image [5] - Geely's platform architecture is a core advantage, enabling the development of multiple brands and models efficiently [21] - The company is committed to maintaining a strong presence in both electric and hybrid vehicle markets, with advanced technologies driving future growth [22][23]

Core Insights - The article highlights the top short-selling stocks in the market, focusing on their short-selling ratios, amounts, and deviation values [1][2][3] Short-Selling Ratios - The top three stocks by short-selling ratio are: - China Resources Beer-R (80291) at 100.00% - Bank of China Hong Kong-R (82388) at 88.69% - Kuaishou-WR (81024) at 80.08% [1][2] Short-Selling Amounts - The leading stocks by short-selling amount are: - Alibaba-SW (09988) with a short-selling amount of 2.949 billion - Tencent Holdings (00700) with 2.711 billion - Meituan-W (03690) with 2.333 billion [1][3] Deviation Values - The stocks with the highest deviation values are: - China Resources Beer-R (80291) at 51.62% - Kuaishou-WR (81024) at 43.86% - Bank of China Hong Kong-R (82388) at 39.84% [1][2][3]

Core Insights - The cumulative operation of the China-Europe Railway Express (Xi'an) has surpassed 30,000 trains, marking a significant milestone in logistics and trade connectivity [1] - The Xi'an manufacturing base of Geely Automobile has achieved a production rate of 16.46 million vehicles in the first half of the year, reflecting a year-on-year growth of 29.85% [1] - The automotive industry in Shaanxi is being positioned as a pillar industry, with a focus on innovation and the establishment of a complete industrial chain [4][5] Group 1: China-Europe Railway Express - The China-Europe Railway Express (Xi'an) has maintained the highest volume, cargo volume, and container utilization rate in the country for seven consecutive years [1] - The railway service is enhancing the global supply chain, connecting various sectors such as smart manufacturing and modern agriculture [1] Group 2: Geely Automobile - Geely's Xi'an manufacturing base is the largest and most advanced factory of the Zhejiang Geely Holding Group, featuring 100% automation and a fully digital platform [1] - The production line at Geely's Baoji manufacturing base has seen a year-on-year sales increase of over 26% for new energy vehicles [1][2] Group 3: Shaanxi Automotive Industry - The automotive manufacturing value added in Shaanxi grew by 27.9% in the first half of the year, with total vehicle production reaching 942,800 units, a year-on-year increase of 25.18% [4] - The province has established a comprehensive automotive industry ecosystem, with a focus on enhancing the supply chain and increasing the local integration rate of automotive parts to 57% [4][5] - Shaanxi has implemented various policies and established a special fund of 4 billion yuan to support the growth of the automotive industry [4][5]

Group 1: New Car Launches - Tesla Model 3 Long Range Rear-Wheel Drive version launched at a price of 269,500 CNY, featuring a 78.4 kWh battery and a CLTC range of 830 km [4][11] - New Wuling Xingguang S launched with a price range of 99,800 to 129,800 CNY, offering both pure electric and plug-in hybrid versions [12][13] - Chery Fengyun X3 family launched with prices from 89,900 to 109,900 CNY, featuring a maximum power of 185 kW and a CLTC range of up to 520 km [23][25] - New Deep Blue L07 launched with a limited-time price of 135,900 to 155,900 CNY, offering both pure electric and range-extended versions [28][29] - New Tank 500 pre-sale started with a price range of 360,000 to 388,800 CNY, featuring a design inspired by Chinese classical architecture [38][40] - Dongfeng Fengshen L8 pre-sale started with a price range of 129,900 to 149,900 CNY, featuring a luxurious interior and advanced technology [46][49] - Lynk & Co 10EM-P pre-sale started with a price range of 192,000 to 222,000 CNY, featuring high-end specifications and advanced driving assistance [55][56] - New Zhiji LS6 pre-sale started with a price range of 209,900 to 279,900 CNY, featuring a new generation digital cockpit and advanced driving capabilities [60][66] - New Lantu Zhiyin pre-sale started at 220,000 CNY, featuring advanced driving assistance and a spacious interior [68][70] - New Buick GL8 Luxurious version pre-sale started, featuring a hybrid system with a maximum electric range of 200 km [72][78] - Chery Fengyun T11 opened for blind booking, featuring a 1.5T range-extended system [82][86] Group 2: Company Developments - Faraday Future's Equation Leopard Ti 7 will debut with BYD's self-developed tablet, enhancing in-car connectivity [89][92] - Envision Group launched an AI Super Storage and Charging Network, integrating energy management solutions [93][96] - The Ministry of Industry and Information Technology emphasized that companies should not mislead consumers regarding driver assistance systems [97][101] - Geely Auto reported a record revenue of 150.3 billion CNY for the first half of 2025, with a 27% year-on-year increase [102][106] - Hesai Technology received mass production designation for its lidar from a Toyota joint venture, indicating growth in the supply chain [110][113] Group 3: International News - Elon Musk announced the dissolution of the Dojo supercomputer team, indicating a shift in Tesla's focus towards AI chip development [114][117]