Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The new vehicle cycle is expected to significantly boost sales in 2024, with a projected total sales volume of 2.169 million units, representing a year-on-year growth of 27.4% [7] - The earnings per share (EPS) forecasts for 2024-2026 are adjusted to 1.43, 1.08, and 1.29 yuan respectively, with a target price set at 16.20 yuan (or 17.60 HKD) [2] Financial Performance Summary - **Revenue**: - 2022: 147,965 million yuan - 2023: 179,204 million yuan (21.1% YoY growth) - 2024E: 224,632 million yuan (25.4% YoY growth) - 2025E: 269,476 million yuan (20.0% YoY growth) - 2026E: 316,008 million yuan (17.3% YoY growth) [4] - **Net Profit**: - 2022: 5,260 million yuan - 2023: 5,308 million yuan (0.9% YoY growth) - 2024E: 14,442 million yuan (172.1% YoY growth) - 2025E: 10,884 million yuan (-24.6% YoY growth) - 2026E: 12,948 million yuan (19.0% YoY growth) [4] - **EPS**: - 2022: 0.52 yuan - 2023: 0.53 yuan - 2024E: 1.43 yuan - 2025E: 1.08 yuan - 2026E: 1.29 yuan [4] - **Profitability Ratios**: - Gross Margin: 14.1% (2022), 15.3% (2023), 15.6% (2024E-2026E) - Net Margin: 3.6% (2022), 3.0% (2023), 6.4% (2024E), 4.0% (2025E), 4.1% (2026E) [4] Market Performance - The company's stock price as of January 28, 2025, is 14.3 HKD, with a 52-week high of 16.44 HKD and a low of 7.08 HKD [5] - The average PE ratio for comparable companies in 2025 is projected at 15 times [2]

Investment Rating - The report maintains a "Recommended" rating for the company [4] Core Views - The company achieved a strong start in January 2025 with total wholesale sales of 267,000 vehicles, representing a year-on-year increase of 24.9% and a month-on-month increase of 27.0%. The new energy vehicle sales reached 121,071 units, up 83.9% year-on-year and 8.9% month-on-month, with a penetration rate of 45.4% [1][2] - The company aims for a total sales target of 2.71 million vehicles in 2025, which is expected to grow approximately 25% year-on-year. This includes 2 million units from the Geely brand, 320,000 units from the Zeekr brand, and 390,000 units from the Lynk & Co brand. The new energy vehicle sales target is set at 1.5 million units, with an anticipated year-on-year growth of about 69% [2] - The company is focusing on enhancing its new energy brand positioning, with the Galaxy and Zeekr brands targeting mainstream consumer markets and tech luxury segments, respectively. The product cycle for 2025 is expected to be robust, with multiple brands contributing to growth [2] - The company has increased its stake in Zeekr and gained control over Lynk & Co, which is expected to facilitate internal resource integration and improve operational efficiency [3] Financial Forecasts - Revenue projections for 2024-2026 are estimated at 224.78 billion, 289.69 billion, and 338.83 billion RMB, respectively. The net profit forecasts are 16.42 billion, 14.10 billion, and 17.45 billion RMB, with corresponding EPS of 1.63, 1.40, and 1.73 RMB [4][5] - The report indicates a significant increase in net profit for 2024, with a projected growth rate of 209.3%, followed by a decrease of 14.1% in 2025, and a recovery of 23.7% in 2026 [5]

Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company is entering a new growth phase, focusing on resource integration and strategic alignment, particularly in the electric vehicle (EV) sector [1][12]. - The company has established itself as a leading player in the domestic EV market, with a clear multi-brand strategy that enhances its competitive positioning [2][35]. - The profitability of the main brand in the EV segment is expected to improve significantly, driven by cost reductions and increased sales volume [3][4]. Summary by Sections 1. Introduction - The company has a strong foundation in vehicle manufacturing and is positioned to increase market share and brand value through revenue and profit expansion [10]. 2. New Energy Brand Momentum - The company has clarified its brand positioning with three main brands: Galaxy (mainstream), Zeekr (luxury), and Lynk & Co (youthful) [35][21]. - As of July 2024, the company's new energy vehicle (NEV) sales accounted for over 40% of total sales, with expectations for further growth [35][36]. 3. Profitability - The company is expected to see a turnaround in profitability, with revenue projections of 224.8 billion, 289.7 billion, and 338.8 billion RMB for 2024, 2025, and 2026 respectively [4][5]. - The main brand's EV segment is entering a positive profit cycle, supported by new model launches and cost efficiencies [3][4]. 4. International Expansion - The company is leveraging its global resources to enhance its international market presence, particularly in regions with high demand for its products [4][12]. 5. Smart Technology - The company is advancing its smart driving and cockpit technologies, with significant investments in self-developed systems and collaborations with suppliers [5][12]. 6. Financial Forecast and Investment Recommendations - The report adjusts the profit forecast, expecting net profits of 9.02 billion, 14.1 billion, and 17.45 billion RMB for 2024, 2025, and 2026 respectively [4][5]. - The company is positioned for a strong valuation with a PE ratio of 14, 9, and 8 for the respective years [4][5].

Summary of Conference Call Notes Company and Industry - The discussion revolves around the automotive industry, specifically focusing on the Lynk & Co 900 model, which is positioned as a significant product among traditional car manufacturers [1][2]. Core Insights and Arguments 1. **Product Positioning and Characteristics** - The Lynk & Co 900 is described as a phenomenon in the traditional automotive sector, particularly in the large six-seat SUV category, with a length of 5.24 meters and a wheelbase of 3.16 meters, making it competitive among domestic brands [1][2]. - It is noted for its innovative features and strong product capabilities, setting it apart from competitors like the L9 from Li Auto [1][2]. 2. **Key Highlights of the Lynk & Co 900** - **Interior Space**: The vehicle features a unique interior space design, including movable second and third-row seats, which can slide forward and backward, providing flexibility not commonly found in other SUVs [3][4]. - **Smart Cockpit**: The smart cockpit includes a dual-screen setup allowing for multitasking, such as watching movies or using apps independently by passengers [8][9]. - **Comfort and Luxury**: The interior is highlighted for its high-quality materials and luxurious feel, potentially surpassing competitors in terms of interior quality [10][11]. - **Chassis and Powertrain**: The vehicle utilizes the SBA EVO architecture, designed for larger vehicles, and features a combination of a 2.0T and a 1.5T engine, with a strong emphasis on performance and handling [12][13][14]. - **Safety Features**: Enhanced safety measures are implemented, particularly for the third row, which is noted to have superior safety features compared to competitors [17]. 3. **Pricing and Sales Expectations** - The expected pricing for the Lynk & Co 900 is estimated to be around 400,000 RMB, potentially making it more affordable than the N9 model [18]. - Projected monthly sales are estimated to be between 5,000 to 10,000 units, indicating strong market potential [18]. 4. **Impact on the Industry** - The introduction of the Lynk & Co 900 is expected to significantly influence the competitive landscape, particularly against brands like BYD, which is also focusing on high-end vehicles [19]. Other Important but Possibly Overlooked Content - The design of the vehicle includes a unique "heavenly door" for the trunk, which allows for easier access in tight parking spaces [6]. - The second-row seats can rotate 180 degrees, catering to family-oriented use cases, which is a first in the SUV segment [5]. - The vehicle's architecture allows for high space utilization, contributing to its overall performance and comfort [13][14]. - The discussion emphasizes the importance of the vehicle's design and technology in enhancing user experience and safety, which may not be immediately apparent in traditional automotive evaluations [16].

Summary of the Conference Call on 2025 Sales Targets for Geely Automobile Company Overview - **Company**: Geely Automobile - **Industry**: Automotive, specifically focusing on traditional fuel vehicles and new energy vehicles (NEVs) Key Points and Arguments Sales Performance and Targets - In 2024, Geely achieved a record sales volume of over 2.17 million units, exceeding the target of 2 million units by 9%, with a year-on-year growth of 32% [1][20] - The sales target for 2025 is set at 2.71 million units, which includes an export target of 467,000 units, reflecting a growth rate of over 15% [7][22] - The company aims for NEV sales to reach 1.5 million units in 2025, a 69% increase from 2024, with a penetration rate exceeding 55% [5][22] Brand Performance - Geely brand sales in 2024 reached 1.669 million units, a 27% increase, with the new high-end series contributing 448,000 units [2] - The Geely Galaxy series and the Geely New Energy vehicles have shown significant market performance, with the Galaxy New Energy vehicle achieving over 50,000 deliveries in just 80 days [3][23] - The Geely brand is positioned as a leader in the domestic NEV market, with a notable increase in overseas sales, which reached 404,000 units, a 53% increase year-on-year [2] Market Trends and Strategic Focus - The automotive market is expected to maintain steady growth, with structural changes becoming more pronounced, particularly in the NEV segment [4] - Geely is focusing on enhancing its international presence and brand recognition, with plans to accelerate overseas production and sales [4][36] - The company is committed to addressing macroeconomic trends and potential risks associated with global market uncertainties [4] Profitability and Financial Goals - A key goal for 2025 is for the NEV segment to achieve profitability, building on a significant turnaround in the third quarter of 2024 [8] - The management emphasizes that achieving profitability is crucial for sustainable growth and shareholder returns [8][41] ESG and Corporate Responsibility - Geely has been recognized for its ESG performance, ranking first in the Chinese automotive industry, and plans to enhance its ESG initiatives further [9] - The company is committed to maintaining product quality and social responsibility amidst fierce market competition [9] Product Development and Innovation - Geely plans to launch several new models in 2025, including four to five new energy vehicles, to fill gaps in its product lineup [24][27] - The company is investing in smart technology and AI integration to enhance vehicle performance and user experience [32][33] Challenges and Competitive Landscape - The automotive industry is facing challenges such as increased competition and technological changes, but Geely remains confident in its product competitiveness [4][40] - The company aims to avoid price wars and instead focus on value and technological superiority to maintain market competitiveness [39] Additional Important Content - Geely's inventory levels are at historical lows, allowing for a more confident approach to meeting 2025 targets [7] - The company is actively working on integrating its brands and optimizing its operational efficiency to enhance overall performance [10][19] - The management team expresses strong confidence in achieving the set targets for 2025, emphasizing a dual focus on sales and profitability [41]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Geely Automobile (GELYY) as a strong candidate for value investors due to its favorable financial metrics and strong earnings outlook [1][2][6]. Company Summary - Geely Automobile (GELYY) currently holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 8.26, which is lower than the industry average P/E of 8.87, suggesting it may be undervalued [4]. - Over the past 12 months, GELYY's Forward P/E has fluctuated between a high of 17.07 and a low of 6.71, with a median of 11.13, indicating variability in market perception [4]. - The P/B ratio for GELYY is 0.87, which is also lower than the industry average P/B of 0.95, further supporting the notion of undervaluation [5]. - GELYY's P/B has ranged from a high of 1.17 to a low of 0.82 over the past year, with a median of 0.98, reflecting its market value relative to book value [5]. - Overall, the financial metrics suggest that Geely Automobile is likely undervalued, making it an attractive option for value investors [6].

Investment Rating - The report maintains a "Buy" rating for Geely Automobile with a target price of HKD 19.0, indicating a potential upside of 35% from the current price of HKD 14.1 [1][4][3]. Core Insights - Geely Automobile achieved a total sales volume of 2.177 million units in 2024, representing a year-on-year growth of 32%, exceeding its sales target [2][3]. - The report highlights the strong performance of Geely's brands, driven by new technologies and product upgrades, which are expected to continue fueling sales and revenue growth [1][3]. - The company aims for a sales target of 2.71 million units in 2025, with a focus on new energy vehicles (NEVs) and a projected NEV sales volume of 1.5 million units, reflecting a growth of 69% [3][2]. Sales Performance - In December 2024, Geely's total sales reached 210,000 units, a year-on-year increase of 43%, with the Geely brand alone selling 157,000 units, up 46% year-on-year [2]. - The cumulative sales for the Geely brand in 2024 were 1.669 million units, a 27.4% increase, while Zeekr and Lynk & Co brands saw significant growth of 87.2% and 29.6% respectively [2][3]. Financial Projections - The report projects Geely's revenue to grow from RMB 179.2 billion in FY2023 to RMB 239.3 billion in FY2024, marking a growth rate of 34% [7]. - Net profit is expected to increase significantly to RMB 15.8 billion in FY2024, reflecting a growth rate of 197% compared to the previous year [7]. - The gross margin is projected to improve gradually, reaching 16.5% by FY2026 [7]. Product Strategy - Geely plans to launch five new energy products in 2025, including two SUVs and three sedans, with a new hybrid technology to enhance competitiveness [3]. - The Zeekr brand will focus on increasing its smart technology offerings, planning to release three new models in 2025 [3]. - Lynk & Co aims to upgrade its existing products and introduce two new hybrid models in the second and third quarters of 2025 [3].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 14.82 HKD, corresponding to a PE ratio of 9/11/8 for the years 2024-2026 [3][18]. Core Insights - The company achieved a total wholesale sales volume of 210,000 units in December, representing a year-on-year increase of 43% and a full-year total of 2.177 million units, up 32% year-on-year. The new energy vehicle (NEV) sales reached 111,206 units in December, up 84% year-on-year, with a penetration rate of 52.9% [3]. - For 2025, the company targets a sales volume of 2.71 million units, with a projected year-on-year growth of approximately 25%. The NEV sales target is set at 1.5 million units, expecting a year-on-year growth of about 69% [3]. - The launch of the GEA architecture's first plug-in hybrid product, the Galaxy Starship 7, is expected to enhance the company's market share in the NEV segment, with initial delivery volumes exceeding 10,000 units within 13 days of launch [3]. - The company has increased its stake in Zeekr and gained control over Lynk & Co, which is anticipated to improve internal resource integration and operational efficiency [3]. Financial Summary - Revenue projections for 2024-2026 are 224.78 billion, 277.69 billion, and 308.83 billion CNY, respectively. Net profit estimates are 16.04 billion, 12.58 billion, and 16.32 billion CNY for the same period [2][3]. - The company’s earnings per share (EPS) are forecasted at 1.59, 1.25, and 1.62 CNY for 2024-2026, respectively [2][3]. - The report highlights a significant increase in net profit growth rate for 2024 at 202.1%, followed by a decrease in 2025 and a recovery in 2026 [2].

Group 1 - The board has set a sales target of 2.71 million vehicles for 2025, representing an approximate 25% increase compared to the total sales achieved in 2024 [1] - In a recent announcement, Geely Automobile reported a December 2024 sales figure of 210,100 vehicles, marking a year-on-year growth of approximately 43% [2] - The cumulative sales for Geely in 2024 reached 2.1766 million vehicles, reflecting a year-on-year increase of 32% [2]

Summary of Conference Call Records Company and Industry Overview - The conference call discusses the automotive industry, specifically focusing on the company Geely and its product strategies, including new vehicle launches and market positioning. Key Points and Arguments 1. Geely is experiencing its strongest new product cycle, with a comprehensive strategy targeting price ranges from 100,000 to 500,000 RMB, aiming to compete with brands like BRD [1] 2. The Galaxy brand is introducing new models based on the GA architecture, featuring the new generation of powertrains, emphasizing large space, low fuel consumption, and high cost-performance ratio [1] 3. The Galaxy L6 and L7 models have seen significant improvements in fuel efficiency, with L7's consumption decreasing from 5.23 L/100km last year to 4.9 L/100km this year, and L6's from 4.55 L/100km to 3.95 L/100km, representing a reduction of over 10% [3] 4. The Galaxy E8 will be updated next year to include a hybrid version alongside its existing electric variant, targeting competition with BYD's Han series, which has a combined sales volume of approximately 20,000 to 30,000 units [2] 5. The upcoming EX11 and DX11 SUVs are expected to be priced around 400,000 RMB and 300,000 RMB respectively, both featuring hybrid versions and advanced self-driving capabilities [4] 6. The Lynk & Co brand is set to launch the L946, a large 6-seater vehicle priced between 300,000 to 400,000 RMB, built on the new SPA 2.0 architecture, which offers improved space utilization compared to previous models [5][6] 7. The L946 may feature a 50 kWh battery and a tri-motor system for rear-wheel steering, enhancing its performance and appeal in the market [6] Additional Important Information - The conference highlights the competitive landscape in the automotive sector, with Geely's strategic focus on high-end models and hybrid technologies to capture market share against established competitors [5] - The emphasis on fuel efficiency and cost-effectiveness in new models indicates a response to consumer demand for sustainable and economical vehicles [3] - The introduction of multiple new models across different price segments suggests a comprehensive approach to market penetration and brand diversification [1][4]