Core Viewpoint - Geely Automobile is moving to privatize Zeekr by acquiring all issued and outstanding shares, aiming to create a unified listing platform and enhance competitiveness in the global electric vehicle market [1][2] Group 1: Privatization Details - The agreement allows Zeekr shareholders to choose between cash or shares as compensation for their holdings, with cash options set at $2.687 per share for Zeekr shares and $26.87 per share for Zeekr American Depositary Shares [1] - The share price for the compensation shares is set at HKD 17.15, representing a premium of approximately 2.4% over the last closing price before the non-binding offer [1] Group 2: Strategic Advantages - The privatization will increase Geely's ownership of Zeekr from 62.8% to full ownership, providing significant strategic, operational, and financial advantages [2] - Full ownership is expected to simplify operations, unify strategic direction, enhance synergies, and reduce compliance burdens, ultimately improving efficiency, innovation capability, and profitability [2]

每名合资格极氪持有人(香港非专业投资者除外，彼等将仅可收取现金代价)可(就其持有的任何极氪股份 或极氪美国存托股份(如适用))选择(i)就每股极氪股份，收取2.687美元现金或1.23股代价股份;或(ii)就每 股极氪美国存托股份，收取26.87美元现金或12.3股代价股份(将以吉利美国存托股份形式交付)。倘合资 格极氪持有人未能在选择截止时间前就其任何极氪股份或极氪美国存托股份作出有效选择，则该合资格 极氪持有人将被视为已选择就有关极氪股份或极氪美国存托股份收取现金代价。所有代价股份(如有)将 根据特别授权发行。 基于要约价及要约比率： (i)假设所有合资格极氪持有人均选择收取现金代价，而私有化完全以现金方式进行，则集团应付合资格 极氪持有人的现金代价总额为23.99亿美元(相当于约人民币171.99亿元)，包括应付关连极氪持有人的 10.48亿美元(相当于约人民币75.18亿元)。有关现金代价预计将以集团内部资源或债务融资(如必要)拨 付;或 智通财经APP讯，吉利汽车(00175)发布公告，于2025年7月15日(非交易时段)，公司、合并附属公司 Keystone Mergersub Limited及极 ...

Core Viewpoint - The gross profit margin of Tianhai Electronics has significantly declined due to increased collaboration with major clients like Geely, rising raw material costs, and a competitive market environment [1][7]. Group 1: Financial Performance - Tianhai Electronics plans to list on the Shenzhen Stock Exchange, focusing on automotive wiring harnesses, connectors, and electronic components [1]. - The company's revenue for 2022, 2023, and 2024 is projected to be 8.215 billion, 11.549 billion, and 12.523 billion yuan respectively, with net profits of 402 million, 652 million, and 614 million yuan [2]. - The gross profit margin has decreased from 15.94% in 2022 to 14.59% in 2024, indicating a downward trend [5]. Group 2: Market Dynamics - The automotive wiring harness market in China is estimated to reach approximately 119.6 billion yuan in 2024, with Tianhai Electronics holding an 8.45% market share [4]. - The connector market is projected to be around 478 billion yuan in 2024, with Tianhai Electronics capturing a 3.52% share [4]. - The company faces challenges from intense competition and price wars among major automotive manufacturers, which have led to a "increment without profit" scenario [3]. Group 3: Client Relationships - Tianhai Electronics has established long-term partnerships with major automotive manufacturers, including Geely, Chery, SAIC, and others, which has increased its revenue from high-voltage wiring harnesses [7][9]. - The collaboration with Geely has directly impacted the gross profit margin of high-voltage wiring harnesses, as increased production has led to higher unit costs and lower average prices [10][11]. Group 4: Raw Material Costs - The prices of key raw materials, copper and aluminum, remain high, with copper around 80,000 yuan per ton and aluminum exceeding 20,000 yuan per ton [6]. - Rising raw material costs have contributed to the decline in gross profit margins for both high-voltage and low-voltage wiring harnesses [10].

Core Insights - China's car sales reached a record high for 2025 in June, driven by increasing demand for new energy vehicles (NEVs) and intense competition among leading manufacturers like BYD and Geely Auto [1][10] Sales Performance - Vehicle sales in China rose for the fifth consecutive month in June, with approximately 2.1 million cars sold, marking an 18.6% increase year-over-year and a 13.9% increase month-over-month [2][10] - NEV sales accounted for 52.7% of total sales in June, the highest percentage for any month in 2025, with a year-over-year growth of 30% and a month-over-month increase of 28% [3][10] - Total vehicle sales in the first half of 2025 reached 15.65 million units, an 11.4% increase, while NEV sales rose 40% to 6.94 million units [3] Market Dynamics - The surge in NEV demand reflects China's accelerating transition to electric mobility, supported by a wider range of models and aggressive pricing strategies [4] - The market remains highly competitive, particularly in the EV sector, where ongoing price wars are impacting profit margins [4] Leading Companies - BYD maintained its position as the largest NEV maker in China with a 31.7% market share, selling 352,081 NEVs in June, a 25.7% increase year-over-year [5] - Tesla sold 61,484 vehicles in China in June, a 59.3% increase from May, but experienced a 4.3% decline in sales compared to the first quarter of 2025 [6] - Geely sold 114,798 NEVs in June, an 80.7% increase year-over-year, holding a 10.3% market share [7] - General Motors reported its strongest quarterly sales growth in China in four years, with deliveries exceeding 447,000 units in the second quarter of 2025, a 20% year-over-year increase [9] Future Outlook - The second half of 2025 will be critical in determining whether the current momentum in China's auto market can be sustained amid rising competition and margin pressures [11]

Group 1 - The company sold 236,000 vehicles in June, representing a year-over-year increase of 42.1% [1] - For the first half of the year, the company achieved total vehicle sales of 1.41 million, a year-over-year increase of 47.4% [2] - The company raised its annual sales target to 3 million vehicles, which is a 38% increase compared to the previous year [1][2] Group 2 - The company held a technology launch event for the Zeekr 9X on July 9, introducing the world's first full-stack 900V high-voltage hybrid architecture, SEA-S [1][3] - The Zeekr 9X is expected to start pre-sales at the end of August and is positioned as the brand's flagship hybrid model [3] - The Zeekr 9X features a maximum engine power of 205 kW and a thermal efficiency exceeding 46%, with a 20%-80% battery recharge time of only 9 minutes [3] Group 3 - The company expects to see significant profit growth, with net profits for 2025, 2026, and 2027 projected at 13.84 billion, 17.9 billion, and 22.3 billion yuan respectively, reflecting year-over-year increases of 47%, 30%, and 24% [1][3] - The current stock price corresponds to P/E ratios of 11, 8.6, and 7 for the years 2025, 2026, and 2027, respectively, with a recommendation to "buy" [1][3]

Core Viewpoint - Geely Automobile Holdings Ltd. has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4][6]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate reflecting EPS estimates from sell-side analysts [2][3]. - The recent upgrade for Geely Automobile suggests an improvement in its underlying business, which is expected to positively impact its stock price [4][6]. Impact of Earnings Estimate Revisions - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [5][7]. - For Geely Automobile, the Zacks Consensus Estimate for the fiscal year ending December 2025 is projected at $4.12 per share, unchanged from the previous year, but has seen a 7% increase in estimates over the past three months [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Geely Automobile's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [6][13]. Core Insights - The company has raised its annual sales target to 3 million vehicles, representing a year-on-year increase of 38% [7]. - In June, the company sold 236,000 vehicles, a year-on-year increase of 42.1%, contributing to a total of 1.41 million vehicles sold in the first half of the year, up 47.4% year-on-year [7]. - The launch of the Zeekr 9X, featuring advanced technologies, is expected to enhance the company's competitive position in the market [9]. Company Overview - The company operates in the automotive industry, with a market capitalization of HKD 135.24 billion and a share price of HKD 17.00 as of July 9, 2025 [2]. - Major shareholders include Holding Inc. with a 25.24% stake [2]. - The company's stock has seen a 12-month high of HKD 19.97 and a low of HKD 7.33 [2]. Sales Performance - The company achieved a significant increase in sales, with June sales reaching 236,000 units, and a total of 1.41 million units sold in the first half of the year [7]. - The sales of electric vehicles accounted for 52% of total sales in June, with the Geely brand leading the sales figures [7]. Financial Projections - The report projects net profits for 2025, 2026, and 2027 to be RMB 138.4 billion, RMB 179 billion, and RMB 223 billion respectively, with year-on-year growth rates of 47%, 30%, and 24% [9][11]. - Earnings per share (EPS) are expected to be RMB 1.37, RMB 1.78, and RMB 2.20 for the same years [9][11]. Product Development - The Zeekr 9X is set to be the brand's flagship hybrid model, featuring a 900V high-voltage architecture and advanced battery technology [9]. - The vehicle is expected to support rapid charging capabilities and has a maximum electric range of 380 kilometers [9].

Group 1 - Geely Auto raised its annual sales target by 10.7% from 2.71 million to 3 million units, reflecting the company's confidence in its growth for the year [1] - In June, Geely's total sales reached 236,000 units, a year-on-year increase of 42.1% and a month-on-month increase of 0.4% [1] - New energy vehicle sales in June were 122,400 units, showing a year-on-year growth of 85.5%, although there was a month-on-month decrease of 11.3% [1] Group 2 - The sales of the Geely brand in June were 193,000 units, representing a year-on-year increase of 58.8% and a month-on-month increase of 2.3% [2] - Geely Galaxy's sales in June reached 90,200 units, a significant year-on-year increase of 201.8%, despite a month-on-month decrease of 11.4% [2] - The Galaxy A7, featuring advanced technology and competitive pricing, is expected to boost the sales of Geely's new energy vehicles further [2] Group 3 - Zeekr brand sales in June were 16,700 units, a year-on-year decrease of 16.9% and a month-on-month decrease of 11.7% [3] - Lynk & Co brand sales in June were 26,300 units, showing a year-on-year increase of 7.7% but a month-on-month decrease of 4.8% [3] - The introduction of the Zeekr 9X, featuring innovative hybrid technology, is anticipated to positively impact Zeekr's sales in the upcoming quarters [3]

Investment Rating - The report maintains a "Buy" rating for Geely Automobile [4][7] Core Views - Geely Automobile has raised its annual sales target by 10.7%, from 2.71 million to 3 million units, reflecting the company's confidence in its growth prospects [11] - The company's sales in June reached 236,000 units, a year-on-year increase of 42.1%, with electric vehicle sales growing by 85.5% [11] - The Galaxy series continues to show strong growth, with sales of 90,200 units in June, a year-on-year increase of 201.8% [11] - The report highlights that Geely's strategy is not merely about price cuts but is supported by technological advancements and strong cost control, which are expected to enhance profitability as scale effects are realized [11] Financial Forecasts and Investment Recommendations - Adjusted earnings per share (EPS) forecasts for 2025-2027 are 1.50, 1.76, and 2.13 RMB respectively, up from previous estimates of 1.36, 1.54, and 1.94 RMB [4] - The target price is set at 22.50 RMB, equivalent to 24.69 HKD, based on a price-to-earnings (PE) ratio of 15 times the average for comparable companies [4] - Revenue projections for 2023A to 2027E are 179,204 million, 240,194 million, 319,444 million, 381,363 million, and 442,685 million RMB, with year-on-year growth rates of 21.1%, 34.0%, 33.0%, 19.4%, and 16.1% respectively [6][12] - Operating profit is expected to grow significantly, with projections of 3,806 million, 7,644 million, 14,116 million, 16,739 million, and 20,314 million RMB for the same period [6][12] - The net profit attributable to the parent company is forecasted to be 5,308 million, 16,632 million, 15,121 million, 17,735 million, and 21,451 million RMB, with growth rates of 0.9%, 213.3%, -9.1%, 17.3%, and 21.0% respectively [6][12]

Group 1 - The company has raised its full-year sales target for 2025 to 3 million units, reflecting a positive outlook for overall operating performance [1][2] - The company expects net profit attributable to shareholders for 2025-2027 to be 16.3 billion, 18.2 billion, and 23.7 billion yuan respectively, with corresponding EPS of 1.62 yuan, 1.81 yuan, and 2.35 yuan [1] - The company maintains a "buy" rating with a target price of 29.49 HKD based on a PE ratio of 16.6 times for 2025 [1] Group 2 - In June 2025, the company's sales reached 236,000 units, a year-on-year increase of 42%, with new energy vehicle sales of 122,000 units, including 85,000 pure electric and 37,000 plug-in hybrid vehicles, representing year-on-year growth of 129% and 30% respectively [1] - For the first half of 2025, the company's sales totaled 1.409 million units, a year-on-year increase of 47%, with new energy vehicle sales of 725,000 units, including 511,000 pure electric and 214,000 plug-in hybrid vehicles, showing year-on-year growth of 173% and 61% respectively [2] - The company’s brand performance showed that Geely brand sales were 1.164 million units, a year-on-year increase of 57%, while Lynk & Co brand sales were 154,000 units, up 22%, and Zeekr brand sales were 91,000 units, up 3% [2]