Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 29.65 [7][12]. Core Views - The company reported Q1 revenue of RMB 72.5 billion, a year-on-year increase of 25%, and a net profit attributable to shareholders of RMB 5.7 billion, up 264% year-on-year, aligning with expectations [1][5]. - The company is expected to benefit from the new car cycle driven by the GEA platform, with strong sales of new models like the Xingyao 8, which is projected to sell over 8,000 units monthly [4][12]. - The proposed privatization of Zeekr by Geely aims to enhance internal integration and reduce inefficiencies, potentially increasing group efficiency by over 5% and improving R&D and management efficiency by 15-20% [3][12]. Financial Performance - In Q1 2025, the company sold 700,000 new vehicles, a 48% increase year-on-year, with a gross margin of 15.8%, reflecting improvements in cost management [2][5]. - The company forecasts revenues of RMB 344.4 billion, RMB 370.8 billion, and RMB 422.5 billion for 2025, 2026, and 2027 respectively, with net profits of RMB 13.8 billion, RMB 15.5 billion, and RMB 19.4 billion for the same years [6][12]. - The report indicates an expected EPS of RMB 1.37, RMB 1.53, and RMB 1.92 for 2025, 2026, and 2027 respectively, with a projected PE ratio of 20x for 2025 [5][12]. Market Outlook - The company is set to launch several new models, including the Lynk & Co Z10 and Zeekr 9X, which are anticipated to enhance revenue and profitability [4][12]. - The report highlights the importance of the GEA platform in driving profitability and operational efficiency, suggesting a positive outlook for the company's future performance [3][12].

Investment Rating - The investment rating for Geely Automobile is "Buy" (maintained) [1] Core Views - The Q1 performance of Geely Automobile met expectations, with a revenue of 72.5 billion yuan, representing a year-on-year increase of 24.5%, and a net profit of 5.67 billion yuan, up 263.4% year-on-year [7] - The company has announced plans to acquire all issued shares of Zeekr, further implementing the "Taizhou Declaration" to focus on the automotive main business and enhance resource utilization efficiency [7] - The overall single-vehicle profitability improved significantly due to scale effects and cost reduction strategies under the "One Geely" initiative [7] Financial Summary - Total revenue forecast for 2023A is 179.846 billion yuan, with a year-on-year growth of 21.06% [1] - The net profit forecast for 2023A is 5.308 billion yuan, with a year-on-year growth of 0.91% [1] - The latest diluted EPS for 2023A is 0.53 yuan per share, with a P/E ratio of 29.71 [1] - The projected net profit for 2025E is 14.208 billion yuan, with a year-on-year decrease of 14.57% [1] - The projected P/E ratios for 2025E, 2026E, and 2027E are 11.10, 8.05, and 5.82 respectively [1]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has shown strong sales growth in April, significantly outperforming the industry average, with total sales reaching 234,100 units, a year-on-year increase of 52.7% [9] - The company is expected to achieve earnings per share (EPS) of 1.27, 1.50, and 1.84 yuan for the years 2025 to 2027, respectively, with a target price set at 19.05 yuan [2] - The report highlights the impressive performance of the Galaxy series and the launch of new models, which are expected to drive future sales growth [9] Financial Forecasts - Revenue is projected to grow from 179,204 million yuan in 2023 to 414,141 million yuan in 2027, with a compound annual growth rate (CAGR) of 16.5% [4] - Operating profit is expected to increase from 3,806 million yuan in 2023 to 17,395 million yuan in 2027, reflecting a significant growth trajectory [4] - Net profit attributable to the parent company is forecasted to rise from 5,308 million yuan in 2023 to 18,526 million yuan in 2027, with a notable increase of 213.3% in 2024 [4] Sales Performance - In April, the company's sales of new energy vehicles reached 125,600 units, a year-on-year increase of 144.2% [9] - The Galaxy brand has shown remarkable sales performance, with 96,600 units sold in April, representing a year-on-year increase of 281.1% [9] - The report notes the launch of several new models, including the Galaxy Star耀 8 and the Zeekr 007 GT, which are expected to enhance the company's market presence [9]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company is expected to achieve EPS of 1.27, 1.50, and 1.84 RMB for the years 2025-2027, with a target price set at 19.05 RMB or 20.67 HKD, based on a PE valuation of 15 times for comparable companies [2] - April sales growth significantly outperformed the industry average, with total sales reaching 234,100 units, a year-on-year increase of 52.7% and a month-on-month increase of 0.8% [9] Financial Forecasts - Revenue projections for 2023A to 2027E are as follows: 179,204 million RMB, 240,194 million RMB, 299,782 million RMB, 355,561 million RMB, and 414,141 million RMB, with year-on-year growth rates of 21.1%, 34.0%, 24.8%, 18.6%, and 16.5% respectively [4] - Operating profit is forecasted to grow from 3,806 million RMB in 2023A to 17,395 million RMB in 2027E, with a notable increase of 100.8% in 2024A [4] - Net profit attributable to the parent company is expected to be 5,308 million RMB in 2023A, increasing to 18,526 million RMB by 2027E, with a significant jump of 213.3% in 2024A [4] Sales Performance - The company's Galaxy series has shown remarkable sales performance, with 96,600 units sold in April 2025, representing a year-on-year increase of 281.1% [9] - The company’s electric vehicle sales reached 125,600 units in April, marking a year-on-year growth of 144.2% [9] Market Position - The company is actively expanding its global footprint, with the launch of the Lynk & Co 900 and significant exports to the European market [9]

Core Viewpoint - Geely Auto plans to acquire all issued shares of Zeekr at a suggested purchase price of $2.57 per share or $25.66 per American Depositary Share, aiming for full integration of Zeekr as a wholly-owned subsidiary [1][2] Group 1: Acquisition Details - The acquisition price represents a premium of approximately 13.6% over the last trading day closing price of Zeekr's American Depositary Shares on the NYSE and a 20% premium over the volume-weighted average price for the last 30 trading days [1] - Geely currently holds about 65.7% of Zeekr's shares, and upon completion of the transaction, Zeekr will be fully merged into Geely Auto [1] Group 2: Strategic Implications - This acquisition is seen as a further implementation of the "Taizhou Declaration," which aims to consolidate brands under Geely Auto, enhancing brand positioning and internal resource integration [2] - Full ownership of Zeekr is expected to improve Geely's profitability, as Zeekr has shown continuous improvement in earnings, with a reported profit of 150 million yuan in Q4 2024 [2] Group 3: Product Strategy and Innovation - Geely Auto is set to launch 10 new energy models in 2025, including 5 new models and several facelifts under the Geely brand, alongside new models from Zeekr and Lynk & Co [3] - The company is focusing on electrification and intelligence, with significant advancements in smart driving capabilities expected across its new and updated models [3][4] Group 4: Financial Outlook - The new GEA architecture supports the upcoming product cycle, with a solid foundation in fuel vehicles and innovative overseas expansion strategies [4] - Geely Auto's net profit for 2025 is projected to be 16.1 billion yuan, with a corresponding PE ratio of 9.8X, indicating strong profitability potential [4]

Investment Rating - The report maintains a "Strong Buy" rating for Geely Automobile, expecting it to outperform the benchmark index by over 20% in the next six months [6][19]. Core Views - Geely Automobile reported excellent performance in Q1 2025, achieving revenue of 72.5 billion yuan, a year-on-year increase of 25%, and a net profit of 5.7 billion yuan, up 41 million yuan year-on-year [2][9]. - The company is restructuring its organizational framework to enhance management efficiency and synergy under the "One Geely" strategy, following the acquisition of Zeekr Technology [4][9]. - The electric and intelligent transformation is progressing, with new models set to launch in 2025, and the integration of its four major brands is expected to reduce costs and increase efficiency [9]. Financial Performance Summary - **Revenue and Profitability**: In Q1 2025, Geely sold 700,000 vehicles, a 48% increase year-on-year, leading to a revenue of 72.5 billion yuan. The gross margin was 15.8%, with a net profit of 5.7 billion yuan, reflecting a significant improvement [9]. - **Future Projections**: The report forecasts total sales of 2.74 million, 3.24 million, and 3.75 million vehicles for 2025-2027, with corresponding revenues of 336.4 billion, 442.0 billion, and 514.2 billion yuan, respectively [9][10]. - **Earnings Per Share (EPS)**: Expected EPS for 2025 is 1.47 yuan, with a projected PE ratio of 12.4 times [5][10]. Market Position and Valuation - The target price range for Geely is set between 23.89 and 28.66 HKD, with a potential upside of 21% to 45% based on historical valuation levels and recent market performance [6][9]. - The company's total market capitalization is approximately 198.94 billion HKD, with a current share price of 19.74 HKD [6][10].

Investment Rating - The report maintains a "Recommended" rating for Geely Automobile [6] Core Views - Geely Automobile's Q1 2025 performance is impressive, with total sales reaching 704,000 units, a year-on-year increase of 47.9% and a quarter-on-quarter increase of 2.5%. Total revenue reached 72.5 billion RMB, up 24.5% year-on-year, and net profit attributable to shareholders was 5.67 billion RMB, a significant increase of 263.4% year-on-year [1][2] - The increase in sales, particularly in the new energy vehicle segment, which saw sales of 339,000 units (up 135.4% year-on-year), has positively impacted revenue. The average selling price (ASP) for Q1 2025 is estimated at 103,000 RMB, a decrease of 19,000 RMB year-on-year [1][2] - The gross margin improved slightly to 15.8%, with a year-on-year increase of 0.2 percentage points. The report attributes this to changes in export structure and product mix, as well as a decrease in expenses due to better integration and collaboration within the company [2] - Geely's plan to privatize Zeekr (ZK.N) is seen as a strategic move to consolidate resources and enhance operational efficiency, aligning with the company's focus on high-end luxury electric vehicles [3] Financial Forecasts - The revenue forecasts for Geely from 2025 to 2027 are projected at 404.78 billion RMB, 489.69 billion RMB, and 572.83 billion RMB, respectively. The net profit forecasts for the same period are 16.21 billion RMB, 22.09 billion RMB, and 25.98 billion RMB, respectively [3][5] - The earnings per share (EPS) are expected to be 1.61 RMB, 2.19 RMB, and 2.58 RMB for 2025, 2026, and 2027, respectively, with corresponding price-to-earnings (P/E) ratios of 11, 8, and 7 [3][5]

Core Viewpoint - Geely Automobile Holdings Limited reported a significant increase in revenue and net profit for Q1 2025, driven by strong sales growth and strategic integration with Zeekr [2][4]. Financial Performance - Geely achieved a revenue of 72.5 billion yuan in Q1 2025, a year-on-year increase of 25% [2]. - The net profit reached 5.67 billion yuan, marking a remarkable year-on-year growth of 264%, surpassing the total annual profit of previous years [3][4]. - The total sales volume for Q1 2025 was 704,000 units, a historical high and a 48% increase year-on-year [4][5]. Strategic Integration - Geely announced a strategic integration plan with Zeekr to enhance competitiveness and resource efficiency, aiming to eliminate redundancy and reduce costs [2][8]. - The management restructuring includes the appointment of An Conghui as CEO of Geely Holding Group and Gan Jiayue as CEO of the merged Geely Automobile Group [7][8]. - The integration aims to achieve cost reductions of over 3% in production, 10%-20% in R&D optimization, and 10%-20% in management efficiency [8]. Market Position and Competitiveness - Geely's net profit for Q1 2025 was second only to BYD among major competitors, highlighting its strong market position [4]. - The company’s new energy vehicle sales accounted for 48% of total sales, with a domestic penetration rate of 52% [5]. - Geely's export volume for Q1 2025 was 89,953 units, ranking fifth among the top ten exporters in China [6]. Future Outlook - The integration with Zeekr is expected to enhance profitability and operational efficiency, with initial targets set for over 5% improvement in overall effectiveness [8][9]. - Geely aims to leverage scale effects and systematic advantages to improve resource utilization and market competitiveness [9].

大摩维持吉利汽车目标价21港元以及"增持"评级 金十数据5月16日讯，摩根士丹利发报告指，维持吉利汽车(00175.HK)目标价21港元以及"增持"评级。 吉利汽车强调整合及聚焦于集团资源应对具挑战性市场迫在眉睫。管理层相信，对极氪潜在私有化可能 会增加吉利汽车的经营效率15—20%，这将反映在供应链，研发等成本节约中，及减少冗余投资。更多 交易以及重组的细节待披露。 ...

Core Viewpoint - Geely Automobile is confident in achieving or exceeding its annual sales target, with a strong performance in Q1 2025, showcasing significant revenue and profit growth driven by its transition to new energy vehicles and improved operational efficiency [1][4]. Financial Performance - In Q1 2025, Geely reported total revenue of 72.5 billion yuan, a 25% increase year-on-year, and a net profit attributable to shareholders of 5.67 billion yuan, up 264% [1]. - The gross profit for the quarter reached 11.4 billion yuan, a 26% increase year-on-year, with a gross margin of 15.8%, up 0.2 percentage points from the previous year [1]. Sales and Market Performance - Geely's Q1 sales reached a record high of 703,800 units, a 48% year-on-year increase, achieving 26% of its annual target of 2.71 million units [4]. - The new energy vehicle segment saw a significant boost, with sales from the Zeekr, Lynk & Co, and Galaxy brands totaling 339,000 units, a 135% increase year-on-year [4]. Product Strategy - Geely plans to accelerate its product launch strategy, focusing on both fuel and new energy vehicles, with multiple new models set to be released in 2025 [5]. - The fourth-generation Boyue L SUV has been launched, priced between 92,900 to 119,900 yuan, emphasizing "intelligent equality" in fuel vehicles [5]. Operational Efficiency - Geely has implemented deep internal integration under the "Taizhou Declaration," focusing on strategic alignment and cost reduction, leading to improved operational efficiency [6][9]. - The merger of Zeekr and Lynk & Co has resulted in a significant increase in financial performance, with Zeekr achieving a gross margin of 19.1% in Q1 [6][7]. Strategic Integration - The company is moving towards a "One Geely" strategy to eliminate redundant investments and improve resource allocation, which has positively impacted its stock performance [8][9]. - The integration aims to enhance efficiency across R&D, management, and marketing, targeting a 5% overall efficiency gain and a 15% to 20% improvement in operational metrics [10].