Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on a PE ratio of 8/10/8 for the years 2024-2026 [5][3]. Core Insights - The company reported strong wholesale sales of 250,000 units in November, a year-on-year increase of 25.0% and a month-on-month increase of 10.3%. Cumulatively, sales from January to November reached 1.967 million units, up 28.4% year-on-year [3]. - New energy vehicle (NEV) sales in November were particularly impressive, totaling 122,453 units, representing an 88.3% year-on-year increase and a 12.6% month-on-month increase, with a penetration rate of 49.0% [3]. - The upcoming launch of the Galaxy Starship 7, the first plug-in hybrid product based on the GEA architecture, is expected to enhance the company's market position in the NEV segment [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]. - The financial forecast for 2024-2026 anticipates revenues of 224.78 billion, 277.69 billion, and 308.83 billion yuan, with net profits of 16.04 billion, 12.58 billion, and 16.32 billion yuan respectively [3][4]. Financial Summary - Projected revenues for 2024, 2025, and 2026 are 224.78 billion, 277.69 billion, and 308.83 billion yuan, with growth rates of 25.4%, 23.5%, and 11.2% respectively [4][18]. - Net profit estimates for the same years are 16.04 billion, 12.58 billion, and 16.32 billion yuan, with corresponding growth rates of 202.1%, -21.5%, and 29.7% [4][18]. - Earnings per share (EPS) are projected to be 1.59, 1.25, and 1.62 yuan for 2024, 2025, and 2026 respectively [4][18].

Investment Rating - The report maintains a "Buy" rating for Geely Automobile, with a target price raised to HKD 19.0, indicating a potential upside of 37% from the current price of HKD 13.9 [4][6]. Core Insights - Geely Automobile's performance exceeded expectations in the first three quarters of 2024, achieving revenue of RMB 167.68 billion, a year-on-year increase of 36%, and a net profit of RMB 13.05 billion, up 358% year-on-year [1][2]. - The growth in performance is attributed to steady sales growth and optimization of the product mix, with cumulative sales from January to October reaching 1.716 million units, a 28.9% increase year-on-year [2][3]. - The introduction of the new generation Raytheon EM-i hybrid technology is expected to accelerate product updates, enhancing fuel efficiency and electric drive efficiency [3]. Financial Performance Summary - For FY2024E, sales revenue is projected to reach RMB 239.34 billion, reflecting a growth rate of 34% [5]. - The net profit for FY2024E is estimated at RMB 15.78 billion, representing a significant increase of 197% compared to FY2023A [5]. - The gross margin for FY2024E is expected to be 15.5%, slightly up from 15.3% in FY2023A [5]. - The average ROE is projected to rise to 17.9% in FY2024E, indicating improved profitability [5]. Strategic Developments - Geely is strategically integrating its brands, with plans to transfer 11.3% of Zeekr Intelligent Technology shares to Geely Automobile, increasing its stake to approximately 62.8% [3]. - The restructuring aims to reduce redundant investments across market segments and enhance collaboration in branding, product development, technology, supply chain, marketing, and international expansion [3].

Investment Rating - The report maintains a "Buy" rating for Geely Automobile [1] Core Views - The Q3 performance of Geely Automobile met market expectations, with a single-quarter revenue of 60.378 billion yuan, reflecting a quarter-on-quarter increase of 20.5% and a year-on-year increase of 9.8%. The net profit for the quarter was 2.455 billion yuan, with a year-on-year increase of 92.4% but a quarter-on-quarter decrease of 72.8% [2][3] - The report highlights the strategic synergy from the merger of brands, which is expected to enhance operational efficiency and reduce competition within the group [4] Financial Performance Summary - Total revenue for Geely in 2022 was 148.565 billion yuan, with projections of 179.846 billion yuan for 2023, 250.809 billion yuan for 2024, 316.050 billion yuan for 2025, and 344.520 billion yuan for 2026, indicating a year-on-year growth rate of 45.63% in 2022 and 39.46% in 2024 [1] - The net profit attributable to shareholders was 5.260 billion yuan in 2022, with forecasts of 5.308 billion yuan for 2023, 16.816 billion yuan for 2024, 13.575 billion yuan for 2025, and 15.988 billion yuan for 2026, showing a significant increase of 216.78% in 2024 [1][4] - The report notes that the earnings per share (EPS) is projected to rise from 0.52 yuan in 2022 to 1.67 yuan in 2024, with a price-to-earnings (P/E) ratio of 7.57 for 2024 [1][4] Sales and Profitability Metrics - In Q3, Geely achieved total sales of 534,000 units, with a year-on-year increase of 18.7% and a quarter-on-quarter increase of 11.3%. The average selling price per vehicle was approximately 130,000 yuan [3] - The gross margin for Q3 2024 was reported at 15.6%, with a slight year-on-year increase of 0.1 percentage points [3] - The report indicates that the net profit per vehicle for Geely brand vehicles was 0.55 thousand yuan, reflecting a year-on-year increase of 76% [3]

Core Viewpoint - Geely Automobile Holdings Ltd. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates - The Zacks Consensus Estimate for Geely Automobile for the fiscal year ending December 2024 is projected at $4.45 per share, reflecting a 209% increase from the previous year's reported figure [9]. - Over the past three months, the Zacks Consensus Estimate for Geely has risen by 103.9%, indicating a strong upward trend in earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is tracked through EPS estimates from sell-side analysts [2]. - The system classifies stocks into five groups, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and has shown a strong track record, with Zacks Rank 1 stocks averaging a +25% annual return since 1988 [8]. Market Implications - The upgrade to Zacks Rank 2 places Geely in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [12][11]. - Rising earnings estimates are correlated with stock price movements, as institutional investors often adjust their valuations based on these estimates, leading to buying or selling pressure [5][6].

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].