Investment Rating - The report maintains an "Accumulate" rating for Geely Automobile [1][9] Core Views - Geely Automobile reported a total revenue of 167.68 billion RMB for the first three quarters of 2024, representing a year-on-year increase of 36.01%. The net profit attributable to shareholders reached 13.05 billion RMB, up 358.48% year-on-year, with total sales of 1.4897 million vehicles, a 32.09% increase year-on-year [3][9] - The company has increased its stake in Zeekr to 62.8% by acquiring an additional 11.3% of shares, while Zeekr has acquired 51% of Lynk & Co [3][8] - Geely's Q3 2024 performance showed a revenue of 60.38 billion RMB, with a year-on-year increase of 20.50% and a quarter-on-quarter increase of 9.80%. The net profit attributable to shareholders was 2.455 billion RMB, reflecting a year-on-year increase of 92.40% [5][9] Summary by Sections Revenue and Profitability - In Q3 2024, Geely's average revenue per vehicle (ASP) was 113,100 RMB, with a year-on-year increase of 0.44 thousand RMB and a quarter-on-quarter decrease of 0.15 thousand RMB. The gross margin for Q3 was 15.58%, showing a year-on-year increase of 0.14 percentage points [5][9] - The company’s sales, administrative, and financial expense ratios were 4.47%, 5.82%, and -0.19% respectively, indicating a significant reduction in sales and administrative expense ratios year-on-year [5][9] Sales Performance - Geely's Q3 2024 sales reached 534,000 vehicles, a year-on-year increase of 15.77% and a quarter-on-quarter increase of 11.24%. The sales of new energy vehicles reached 225,700 units, with a year-on-year increase of 58.92% [5][9] - The new energy penetration rate reached 42.26%, up 11.48 percentage points year-on-year [5][9] Strategic Developments - The acquisition of Lynk & Co by Zeekr is expected to enhance resource integration and brand positioning, improving overall operational efficiency and market expansion capabilities [8][9] - The company is projected to achieve revenues of 203.3 billion RMB, 222.4 billion RMB, and 233.3 billion RMB for 2024, 2025, and 2026 respectively, with net profits of 16.03 billion RMB, 11.96 billion RMB, and 15.21 billion RMB [9][10]

Investment Rating - The report maintains a "Buy" rating for Geely Automobile (0175.HK) [4] Core Views - Geely's total revenue for the first three quarters of 2024 increased by 36.0% year-on-year to RMB 167.68 billion, with net profit attributable to shareholders rising by 358% to RMB 13.05 billion [1] - The company has announced a merger between Lynk & Co and Zeekr, aiming to optimize its equity structure and accelerate internal restructuring [3] - The gross margin for the first three quarters of 2024 improved by 0.5 percentage points to 15.3%, with a notable reduction in SG&A expense ratio [2] Summary by Sections Financial Performance - In Q3 2024, total revenue reached RMB 60.38 billion, up 20.5% year-on-year and 9.8% quarter-on-quarter, while net profit attributable to shareholders was RMB 2.46 billion, a 92% increase year-on-year but a 73% decrease quarter-on-quarter [1] - The ASP (average selling price) per vehicle, excluding Lynk & Co, increased by 2.8% quarter-on-quarter to RMB 111,000 [1] Cost Management and Profitability - The gross margin for Q3 2024 was 15.6%, reflecting a slight year-on-year increase but a decrease from the previous quarter [2] - The SG&A expense ratio decreased by 1.3 percentage points year-on-year to 11.6% for the first three quarters of 2024, with a more significant reduction in Q3 [2] Strategic Developments - The merger of Lynk & Co into Zeekr is part of a broader strategy to enhance resource integration and platform-based operations, which is expected to improve profitability [3] - The report anticipates that the restructuring will lead to a clearer product matrix and enhanced competitive advantages in the market [3] Future Outlook - The profit forecasts for 2024 to 2026 have been revised upward by 3.8%, 23.7%, and 26.2% respectively, with a target price adjustment to HK$18.08, corresponding to a 13.5x PE for 2025 [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Insights - The company achieved record high sales and revenue in Q3 2024, with sales reaching 534,000 units, a year-on-year increase of 18.7% and a quarter-on-quarter increase of 8.6% [10] - Q3 2024 revenue was 60.38 billion yuan, representing a year-on-year growth of 20.5% and a quarter-on-quarter growth of 9.8% [10] - The company is focusing on strategic integration and consolidation, as evidenced by the completion of acquisitions involving its subsidiaries and partnerships [10] Summary by Sections Financial Performance - Q3 2024 net profit attributable to shareholders was 2.46 billion yuan, a year-on-year increase of 92.3% but a quarter-on-quarter decline of 72.8% [10] - The gross margin for Q3 2024 was 15.6%, down 2.7 percentage points year-on-year and 0.9 percentage points quarter-on-quarter [10] - The company expects total sales of 2.143 million, 2.782 million, and 3.280 million units for 2024, 2025, and 2026 respectively, with corresponding revenues of 239.03 billion, 325.52 billion, and 395.69 billion yuan [10] Strategic Developments - The "Taizhou Declaration" was officially released by Geely Holding Group, outlining five major initiatives to drive strategic transformation [10] - The company has completed the acquisition of a 30% stake in Lynk & Co from Volvo and a 20% stake from Geely Holding, valuing Lynk & Co at 18 billion yuan [10] - Following these transactions, the ownership structure of Zeekr and Lynk & Co has been adjusted to enhance operational efficiency and reduce internal competition [10] Market Outlook - The company is expected to benefit from a favorable new car cycle, leading to an increase in both sales and market share [10] - Projected revenue growth rates for 2024, 2025, and 2026 are 32.9%, 36.2%, and 21.6% respectively, with net profit growth rates of 209.1%, -22.4%, and 29.3% [11]

Investment Rating - The report maintains a "Buy" rating for Geely Automobile [3][8]. Core Views - Geely's strategic focus on integrating its brands, particularly through increasing its stake in Zeekr and controlling Lynk & Co, is expected to enhance operational efficiency and resource utilization [5][8]. - The company's Q3 2024 revenue reached 60.38 billion yuan, a year-on-year increase of 20.5%, driven by significant sales growth and product optimization [4][5]. - Geely's net profit for Q3 2024 was 2.45 billion yuan, reflecting a substantial year-on-year growth of 92.1% [4][5]. Summary by Sections Company Overview - Geely Holdings announced a restructuring of its equity in Zeekr and Lynk & Co, increasing its stake in Zeekr to approximately 62.8% and establishing Zeekr as the controlling shareholder of Lynk & Co [4][5]. Financial Performance - Q3 2024 revenue was 60.38 billion yuan, up 20.5% year-on-year and 9.8% quarter-on-quarter, with total sales of 534,000 vehicles, a year-on-year increase of 18.7% [4][5]. - The gross profit margin for Q3 2024 was 15.6%, a slight increase of 0.1 percentage points year-on-year [4][5]. - The net profit attributable to shareholders for Q3 2024 was 2.45 billion yuan, with a significant year-on-year increase of 92.1% [4][5]. Strategic Initiatives - The restructuring aims to eliminate redundancies and improve decision-making efficiency within the group, aligning with Geely's strategic transformation goals [5][8]. - The report highlights the positive impact of the new energy vehicle segment, with sales of 226,000 units in Q3 2024, representing a year-on-year increase of 72.7% [4][5]. Future Outlook - The report projects revenue growth for 2024-2026, estimating revenues of 224.78 billion yuan, 277.69 billion yuan, and 308.83 billion yuan respectively, with net profits of 16.04 billion yuan, 12.58 billion yuan, and 16.32 billion yuan [8][9].

Investment Rating - Strong Buy (Maintained) with a target price range of HKD 21.9-24.8 [1] Core Views - The company's Q3 2024 performance exceeded expectations, with revenue reaching RMB 60.4 billion, a 20% YoY increase, and net profit attributable to shareholders of RMB 2.455 billion, a 92% YoY increase [1] - The company plans to increase its stake in Zeekr to 62.8% through the acquisition of shares held by its parent company, and Zeekr intends to acquire Lynk & Co shares from Geely Holding and Volvo to achieve a 51% controlling stake and consolidation [1] - The Geely brand's performance in Q3 2024 was strong, with sales of 410,000 units, a 15% YoY increase, and net profit of RMB 2.62 billion, an 81% YoY increase, driven by the success of the Galaxy E5 and improved profitability in the Galaxy series [2] - Zeekr's performance remained stable, with sales of 55,000 units in Q3 2024, a 51% YoY increase, and a net profit of RMB 10 million, turning profitable compared to the previous quarter [2] - The company's strategic integration of internal resources, including the consolidation of Lynk & Co by Zeekr, is expected to streamline operations and improve efficiency in high-end brand management, product lines, and R&D [2] - The company is expected to see rapid growth in sales and operating performance in the next two years, driven by its successful new product cycle and global expansion, with projected sales of 2.15 million, 2.56 million, and 2.89 million units for 2024-2026, with new energy vehicle penetration rates of 40%, 54%, and 62% respectively [2] - The company's net profit attributable to shareholders for 2024-2026 is forecasted to be RMB 16 billion, RMB 13.6 billion, and RMB 17.5 billion, with corresponding P/E ratios of 8.1x, 9.5x, and 7.4x [2] Financial Highlights - Q3 2024 revenue: RMB 60.4 billion, +20% YoY [1] - Q3 2024 net profit attributable to shareholders: RMB 2.455 billion, +92% YoY [1] - Geely brand Q3 2024 sales: 410,000 units, +15% YoY, net profit: RMB 2.62 billion, +81% YoY [2] - Zeekr Q3 2024 sales: 55,000 units, +51% YoY, net profit: RMB 10 million [2] - 2024-2026 projected sales: 2.15 million, 2.56 million, and 2.89 million units, with new energy vehicle penetration rates of 40%, 54%, and 62% respectively [2] - 2024-2026 projected net profit attributable to shareholders: RMB 16 billion, RMB 13.6 billion, and RMB 17.5 billion [2] Strategic Integration - The company is undergoing significant internal resource integration, including the consolidation of Lynk & Co by Zeekr, which is expected to streamline operations and improve efficiency in high-end brand management, product lines, and R&D [2] - The integration is expected to resolve past issues of resource redundancy and overlap, leading to more effective management of the company's high-end brands and product lines [2] Future Outlook - The company is expected to see rapid growth in sales and operating performance in the next two years, driven by its successful new product cycle and global expansion [2] - The company's strategic integration of internal resources is expected to create synergies and improve future performance [2] - The company's focus on global operations, self-developed intelligent driving, in-car systems, and chips is expected to strengthen its competitive position in key growth areas such as overseas markets and intelligent capabilities [2]

Investment Rating - The report maintains a "Strong Buy" rating for Geely Automobile (00175.HK) with a target price range of HKD 21.9-24.8, compared to the current price of HKD 13.90 [1]. Core Views - The third quarter of 2024 showed impressive results with revenue of CNY 60.4 billion, a year-on-year increase of 20%, and a net profit attributable to shareholders of CNY 2.455 billion, up 92% year-on-year [1]. - The company is strategically integrating its resources, including increasing its stake in Zeekr to 62.8% and acquiring Lynk & Co shares to achieve a controlling interest [1]. - The performance of Geely's main brand exceeded expectations, with Q3 2024 sales of 530,000 units, a 19% year-on-year increase [1]. - The report anticipates rapid growth in sales and operational performance over the next two years, driven by the company's electric vehicle transformation and strategic resource integration [1]. Financial Summary - **Revenue**: - 2023A: CNY 179.204 billion - 2024E: CNY 242.975 billion (35.6% YoY growth) - 2025E: CNY 314.136 billion (29.3% YoY growth) - 2026E: CNY 378.165 billion (20.4% YoY growth) [2][6] - **Net Profit**: - 2023: CNY 5.308 billion - 2024E: CNY 16.011 billion (207.3% YoY growth) - 2025E: CNY 13.588 billion (-15.3% YoY growth) - 2026E: CNY 17.539 billion (29.4% YoY growth) [2][6] - **Earnings Per Share (EPS)**: - 2024E: CNY 1.59 - 2025E: CNY 1.35 - 2026E: CNY 1.74 [2][6] - **Price-to-Earnings Ratio (PE)**: - 2024E: 8.1 - 2025E: 9.5 - 2026E: 7.4 [2][6] Sales and Production Outlook - The report projects total sales of 2.15 million, 2.56 million, and 2.89 million units for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 28%, 19%, and 13% [1]. - The share of new energy vehicles is expected to increase to 40%, 54%, and 62% in the same years [1].

Investment Rating - Buy (Maintained) [1] Core Views - Geely Auto's Q3 2024 performance met expectations, with a strong new product cycle driving growth [1] - Revenue in Q3 2024 reached RMB 60.378 billion, up 20.50% YoY, with net profit of RMB 2.455 billion, up 92.40% YoY [1] - The Galaxy brand and exports contributed significantly to revenue growth, with Galaxy E5 driving a 51.54% YoY increase in sales [1] - Zeekr's gross margin improved significantly, contributing to stable profitability for the group [1] - The company expects continued growth in Q4 2024 and 2025, driven by new models like the Galaxy L6/L7 and the StarShip 7 [1] Financial Performance Revenue and Profit - 2024E revenue is projected at RMB 216.289 billion, up 20% YoY, with net profit of RMB 16.209 billion, up 214% YoY [1] - 2025E revenue is expected to reach RMB 263.751 billion, with net profit of RMB 12.175 billion [1] - 2026E revenue is forecasted at RMB 311.402 billion, with net profit of RMB 14.540 billion [1] Key Financial Ratios - 2024E ROE is projected at 18%, with a P/E ratio of 8.0x [1] - 2025E ROE is expected to be 12%, with a P/E ratio of 10.6x [1] - 2026E ROE is forecasted at 13%, with a P/E ratio of 8.9x [1] Product and Market Performance - Galaxy brand sales in Q3 2024 reached 72,300 units, up 110.95% YoY, driven by the Galaxy E5 [1] - Exports in Q3 2024 totaled 116,600 units, up 60.25% YoY [1] - The average selling price (ASP) in Q3 2024 was RMB 130,000, up 0.58% YoY [1] Future Outlook - The company plans to launch new models, including the Galaxy L6/L7 and StarShip 7, which are expected to drive further growth [1] - The new Thor EM-i powertrain, with a thermal efficiency of 46.5%, is expected to enhance the performance of upcoming models [1] - The company anticipates continued growth in revenue and profitability, supported by a strong product pipeline and market expansion [1] Financial Projections Balance Sheet - 2024E cash and equivalents are projected at RMB 68.710 billion, up from RMB 36.775 billion in 2023A [2] - 2024E total assets are expected to reach RMB 205.500 billion, up from RMB 192.598 billion in 2023A [2] Income Statement - 2024E operating income is projected at RMB 216.289 billion, with operating profit of RMB 7.282 billion [2] - 2025E operating income is expected to reach RMB 263.751 billion, with operating profit of RMB 11.517 billion [2] Cash Flow - 2024E operating cash flow is projected at RMB 35.017 billion, up from RMB 22.342 billion in 2023A [2] - 2025E operating cash flow is expected to be RMB 21.025 billion [2]

Investment Rating - Maintain BUY rating with a target price increase from HK$14.00 to HK$19.00, representing a 36.7% upside from the current price of HK$13.90 [2][5]. Core Insights - Geely Automobile's 3Q24 NEV sales and profitability are strong, with expectations for continued momentum into FY25, leading to significant core profit growth [2]. - 3Q24 operating profit of RMB3.0 billion exceeded estimates by 13%, despite a slight revenue miss of 2% compared to prior forecasts [2]. - The company has raised its FY25E sales volume forecast by 18% to 2.38 million units, driven by positive reception of new NEV models [2]. Financial Performance Summary - 3Q24 revenue was RMB60.4 billion, with a gross profit margin (GPM) of 15.6%, slightly improved from 15.5% in FY24E [2][10]. - The net profit forecast for FY25E has been revised up by 43% to RMB12.4 billion, reflecting strong NEV performance and cost control measures [2][7]. - The company reported a net profit of RMB2.45 billion in 3Q24, which was largely in line with previous forecasts, excluding an impairment loss of RMB2.76 billion from Lynk & Co [2][10]. Sales and Production Outlook - NEV sales volume is projected to surge by 51% year-on-year to 1.32 million units in FY25E, constituting 55% of total sales volume [2]. - The sales volume for Geely increased by 15.8% year-on-year in 3Q24, with a total of 533,960 units sold [6][10]. Valuation Metrics - Zeekr is valued at 0.7x the revised FY25 core revenue, implying a valuation of US$8.3 billion [2]. - Geely's other businesses are valued at 12x FY25E P/E, supporting the overall target price increase [2][9]. Earnings Revision - Revenue estimates for FY25E have been raised to RMB276.93 billion, reflecting a 5.8% increase from previous estimates [7][8]. - The gross profit for FY25E is projected at RMB43.08 billion, with a gross margin of 15.6% [7][8].

Summary of Geely Automobile Holdings Limited Q3 2024 Earnings Call Company Overview - **Company**: Geely Automobile Holdings Limited - **Event**: Q3 2024 Earnings Call - **Date**: Not specified in the documents Key Points Financial Performance - **Sales Volume**: - Cumulative sales from January to September reached 1.49 million units, a year-on-year increase of 32.1% - Q3 sales alone were 534,000 units, up 18.7%, marking a record high for a single quarter [4][5] - **Revenue**: - Cumulative revenue for the first nine months was 167.7 billion RMB, a 36% increase year-on-year - Q3 revenue reached 60.4 billion RMB, up 20.5%, also a record for a single quarter [4][5] - **Profitability**: - Q3 net profit attributable to shareholders was 2.46 billion RMB, a 92% increase year-on-year - Adjusted net profit, excluding one-time asset impairment losses, was 2.76 billion RMB, up 116% [4][5][11] - **Gross Margin**: - Q3 gross profit totaled 9.4 billion RMB, a 21.6% increase year-on-year - Gross margin improved to 15.6%, up 0.5 percentage points from the previous half-year [6] Sales and Market Dynamics - **New Energy Vehicles (NEVs)**: - Q3 NEV sales reached 226,000 units, a 66% increase year-on-year - NEV penetration rate in China surpassed 50%, reaching 53% [5][6] - **Export Performance**: - Q3 export sales were 117,000 units, a 71% increase year-on-year - Cumulative exports for the first nine months reached 314,000 units, up 68% [5][8] Brand Performance - **Geely Brand**: - Q3 sales increased by 15.5% to 409,000 units - The new high-end series saw Q3 sales of 112,000 units, a 25% increase [7][8] - **Lynk & Co**: - Q3 sales reached 70,000 units, an 18% year-on-year increase - NEV penetration rate for Lynk & Co reached 71% [9] - **Geometry**: - Geometry series integrated into the Galaxy brand, focusing on mainstream NEV markets [8] Strategic Developments - **Brand Integration**: - Announced strategic integration of Lynk & Co and Geely, aimed at eliminating internal competition and enhancing operational efficiency [12][19] - **Future Outlook**: - Management expressed confidence in exceeding the annual sales target of 2 million units, with 1.716 million units sold by October [9][11] - **New Models**: - Upcoming models like the Galaxy E5 and Lynk C20 are expected to drive further sales growth [10][11] Challenges and Market Conditions - **Market Environment**: - Despite challenges in the market, management remains optimistic about achieving higher sales targets and improving profitability [9][11] - **Geopolitical Risks**: - Acknowledgment of geopolitical challenges affecting overseas markets, particularly in Europe [34] Additional Insights - **R&D Investment**: - R&D expenditure for the first nine months was 10.3 billion RMB, an 8.4% increase year-on-year, with improved efficiency [6] - **Cost Management**: - Sales expense ratio decreased to 4.5%, and administrative expense ratio fell to 5.8% [6] This summary encapsulates the key financial metrics, market dynamics, brand performance, strategic developments, and challenges faced by Geely Automobile Holdings Limited as discussed in the Q3 2024 earnings call.

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a year-on-year sales growth of 22% in October, with total sales reaching 171,000 units. The sales of new energy vehicles (NEVs) surged by 82.7% to 109,000 units, including a 131.9% increase in battery electric vehicle (BEV) sales and a 17.1% increase in plug-in hybrid electric vehicle (PHEV) sales [3][4] - The company has launched its next-generation hybrid system, the "Raytheon EM Super Hybrid," featuring a new combustion system with a thermal efficiency of 46.5%, the highest in the industry for mass production [4] - The company is expected to achieve net profits of 15.021 billion, 10.374 billion, and 14.110 billion RMB for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 8.66, 12.54, and 9.22 [4] Summary by Sections Sales Performance - In October, the company sold 171,000 vehicles, marking a 22% increase year-on-year. The Galaxy series saw sales of 63,000 units, up over 83%, while the Lynk brand sold 31,000 units, a 26% increase [3] - The company has expanded its international presence, launching the New Emgrand model in Mexico and debuting the Lynk Z20 in Milan, Italy [3] Financial Forecast - Projected revenues for 2024, 2025, and 2026 are 226.176 billion, 283.373 billion, and 354.944 billion RMB respectively, with growth rates of 26.21%, 25.29%, and 25.26% [5][7] - The expected net profit for 2024 is 15.021 billion RMB, with a significant increase of 182.97% compared to 2023 [5][7] Product Development - The new hybrid system integrates advanced AI for energy management and control, resulting in a 15% reduction in average fuel consumption and over a 30% decrease in thermal management power consumption [4]