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]

证券时报e公司讯，11月14日，吉利汽车（00175.HK）发布了2024年第三季度财报。 前三季度，吉利汽车累计销量达149万辆，同比增长32.1%，已完成全年200万辆销量目标的74.5%，达 成率稳居中国汽车品牌前列。 新能源板块以爆发加速的趋势增长，吉利、领克、极氪等新能源产品前9个月总销量达54.6万辆，同比 增长超93%，第三季度国内市场新能源渗透率超50%，稳居新能源品牌第一梯队。 在《台州宣言》和"智能吉利2025"战略的聚焦指引下，吉利汽车紧跟电动化和智能化浪潮，新能源转型 全面向新加快。 ...

Sales Performance - Geely Automobile Holdings reported a 32% year-on-year increase in vehicle sales, reaching 148.97 million units for the nine months ended September 30, 2024[1]. - ZEEKR Intelligent Technology, a subsidiary of Geely, achieved a total delivery of approximately 143,000 vehicles, marking an 81% year-on-year growth for the first three quarters of 2024[8]. Revenue and Profit - Revenue for the nine months ended September 30, 2024, was RMB 167.684 billion, a 36% increase compared to RMB 123.289 billion in the same period last year[1]. - Profit attributable to equity holders of the company surged 358% year-on-year to RMB 13.053 billion for the nine months ended September 30, 2024[1]. - ZEEKR's revenue for the same period reached RMB 53.1 billion, a 51% increase year-on-year, with a gross profit of RMB 8 billion, up 69%[8]. - Total revenue for the period reached RMB 53,079 million, a significant increase from RMB 35,203 million in the previous year[9]. Financial Position - Total assets as of September 30, 2024, amounted to RMB 215.694 billion, reflecting a 12% increase from RMB 192.598 billion as of December 31, 2023[2]. - Equity attributable to equity holders of the company increased by 14% to RMB 92.084 billion as of September 30, 2024, compared to RMB 80.509 billion at the end of 2023[2]. - The net asset value rose to RMB 11,062 million, up from RMB 7,643 million year-over-year[9]. - Current assets increased to RMB 25,393 million, compared to RMB 20,442 million as of December 31, 2023[9]. Liabilities and Non-controlling Interests - Non-controlling interests increased to 46.37% as of September 30, 2024, compared to 45.27% as of December 31, 2023[9]. - Non-current liabilities decreased to RMB (2,628) million from RMB (3,502) million[9]. - Current liabilities rose to RMB (38,907) million from RMB (31,843) million[9]. - The book value of non-controlling interests increased to RMB 6,059 million as of September 30, 2024, from RMB 4,094 million in the previous year[9]. Strategic Initiatives - The company continues to optimize its product structure and launch new products, contributing to the strong sales growth[3]. - The company aims to enhance market expansion and product development strategies moving forward[10]. - The board of directors remains committed to driving growth and innovation in the automotive sector[10].

Investment Rating - The report maintains a "Buy" rating for Geely Automobile [4][10]. Core Views - Geely Automobile is actively transforming into the new energy vehicle (NEV) sector, with three major brands targeting different market segments. The company is transitioning from a technology investment phase to a product output phase, with a robust new car launch plan that includes nine key NEV models across various price ranges [8][14]. - The report forecasts significant sales growth for Geely, projecting total sales of 2.143 million and 2.782 million vehicles for 2024 and 2025, respectively, representing year-on-year growth of 30.0% and 29.8% [2][10]. Summary by Sections 1. Introduction: Sales Potential from New Car Plans - Geely's three brands—Galaxy, Lynk & Co, and Zeekr—are positioned for the NEV market, focusing on cost-effectiveness, personalization, and high-end smart electric vehicles [14]. - The company aims to cover a wide price range with new models, enhancing its market presence [14]. 2. New Car Plans Progressing Smoothly 2.1 Galaxy Brand: Expanding Market Coverage - The Galaxy E5 and Star Wish models have been launched, targeting the A-class SUV and A0-class sedan markets, with competitive pricing [6][29]. - The Galaxy E5 achieved sales of 12,230 units in its first month, indicating strong market acceptance [6][21]. 2.2 Zeekr Brand: Accelerating Model Matrix Expansion - Zeekr has increased its new car release cadence, with models like Zeekr 009 and Zeekr X contributing to a sales increase from 72,000 units in 2022 to 119,000 units in 2023, a growth of 65.0% [6][10]. - Future models like Zeekr 7X and Zeekr MIX are expected to further enhance sales [6]. 2.3 Lynk & Co Brand: Transitioning to NEV - Lynk & Co has launched its first native NEV architecture, with significant sales growth in 2023 and 2024 [6][10]. - The brand's NEV sales reached 96,000 units in the first eight months of 2024, a year-on-year increase of 449.6% [6][10]. 3. Profit Forecast and Investment Recommendations - The report projects total sales for Geely from 2024 to 2026 to be 2.143 million, 2.782 million, and 3.280 million vehicles, with corresponding revenues of 239.03 billion, 325.52 billion, and 395.69 billion yuan [10]. - The expected earnings per share (EPS) for the same period are 1.63, 1.26, and 1.64 yuan, with a three-year compound annual growth rate (CAGR) of 45.8% [10].

Summary of Geely Automobile Conference Call Company Overview - **Company**: Geely Automobile - **Stock Code**: 0175.HK Key Points on Company and Industry Corporate Governance Changes - Geely has undergone significant changes in its corporate governance structure, shifting from independent brand IPOs to focusing on the Hong Kong listing platform. This transition aims to enhance resource utilization efficiency and reduce conflicts of interest, addressing the valuation discount of 0175 [1][3][4] - The Taizhou Declaration emphasizes strategic integration and collaboration, clarifying brand positioning and optimizing equity relationships to improve overall operational efficiency and market competitiveness [1][4] Recent Acquisitions - Geely recently acquired Zhejiang Haoqing Automobile Manufacturing Co., Ltd. for 124 million CNY. This acquisition is expected to significantly reduce related-party transactions, improve corporate governance, and enhance foreign investor confidence [1][5] Future Development Focus - Geely's future priorities include: 1. Focusing on core business: Strengthening software and hardware layout around new energy vehicles and smart technology [6] 2. Optimizing resource allocation: Improving operational efficiency and reducing redundant investments [6] 3. Enhancing brand value: Clarifying brand positioning and promoting healthy development of sub-brands [6] 4. Improving corporate governance: Strengthening governance structures to attract more investors [6] 5. International expansion: Continuing to pursue global market opportunities [6] Financial Performance Expectations - Geely's Q3 report is expected to exceed market expectations, with net profit projected to reach over 3 billion CNY, driven by improved export structure and significant sales growth of models like Xingyue and Boyue [1][9][12] New Energy Vehicle (NEV) Developments - In October, Geely's NEV sales reached 100,000 units, second only to BYD, largely due to the success of new models like Galaxy E5 and Xingyuan [10] - The new PA architecture, designed for affordable electric vehicles, is expected to enhance cost control and comfort, filling a gap in the market [14][16] Mixed-Mode Technology Improvements - Geely's latest generation of hybrid technology, the Raytheon system, has undergone several improvements, including a shift to a single-gear rolling scheme for better fuel efficiency and cost-effectiveness [15][17] - The new Starship 7 model, featuring the latest hybrid technology, is expected to perform well in the market with competitive fuel consumption and electric range options [17] Market Position and Competitiveness - Geely's hybrid product lines are positioned to meet both budget and high-end market demands, with rapid technological advancements expected to drive sales growth in the coming year [18] - The company is also addressing previous shortcomings in its hybrid offerings by aligning product features with consumer preferences for cost-effectiveness [26] Financial Outlook - Geely's overall profit for the year is projected to be between 9 to 9.5 billion CNY, with significant contributions from exports and reduced losses in the NEV sector [29][30] - The company anticipates a rise in profits to between 12.5 to 13 billion CNY in the following year, driven by improved performance in its NEV business [30] Conclusion - Geely is positioned for significant growth in the NEV sector, with a strong focus on improving corporate governance, optimizing resource allocation, and enhancing brand value. The company's strategic initiatives and recent acquisitions are expected to bolster its market competitiveness and financial performance in the coming years [31]

Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company reported strong wholesale sales in October, with total sales of 227,000 units, a year-on-year increase of 25.4% and a month-on-month increase of 12.2%. Cumulatively, from January to October, total sales reached 1.716 million units, up 28.9% year-on-year [2]. - The company’s new energy vehicle (NEV) sales in October were particularly impressive, reaching 108,722 units, a year-on-year increase of 75.1% and a month-on-month increase of 19.3%, with a penetration rate of 48.0% [2]. - The launch of the Raytheon EM-i Super Electric Hybrid is expected to enhance the company's product lineup, featuring a thermal efficiency of 46.5% and a fuel consumption of only 2.62L per 100km [2]. - The company is positioned to strengthen its market share in the NEV segment, particularly in the 100,000 to 200,000 yuan price range, as new models like the Starship 7 are set to launch [2]. - The financial forecast has been adjusted, with expected revenues of 224.78 billion, 277.68 billion, and 308.83 billion yuan for 2024, 2025, and 2026 respectively, and net profits of 16.04 billion, 12.58 billion, and 16.32 billion yuan for the same years [2][3]. Summary by Sections Sales Performance - October wholesale sales reached 227,000 units, with NEV sales at 108,722 units, marking significant year-on-year growth [2]. - The company has achieved 85.8% of its annual sales target of 2 million units by the end of October [2]. New Product Launch - The Raytheon EM-i Super Electric Hybrid is set to launch in November, featuring advanced fuel efficiency and intelligent energy management capabilities [2]. Financial Projections - Revenue projections for 2024-2026 are set at 224.78 billion, 277.68 billion, and 308.83 billion yuan, with corresponding net profits of 16.04 billion, 12.58 billion, and 16.32 billion yuan [3][15]. - The expected EPS for the same period is 1.59, 1.25, and 1.62 yuan, with a P/E ratio of 8, 10, and 8 respectively [3][15].

Investment Rating - The report maintains a "Strong Buy" rating for Geely Automobile (00175.HK) with a target price range of HKD 16.5-18.9, compared to the current price of HKD 13.90 [1][5][9]. Core Views - Geely's electric and intelligent transformation is accelerating with the launch of the Zeekr MIX, which targets young families seeking innovative and spacious electric vehicles. The estimated market potential for this model is around 500,000 units annually [1][5]. - The report anticipates significant growth in Geely's sales and profitability over the next few years, driven by the introduction of new models and the company's strategic resource allocation [1][5]. - The expected sales volume for Geely from 2024 to 2026 is projected to be 2.17 million, 2.55 million, and 2.86 million units, respectively, with a year-on-year growth of 29%, 17%, and 12% [1][5]. Financial Summary - **Revenue Forecast**: - 2023: HKD 179.2 billion - 2024E: HKD 237.3 billion (32.4% YoY growth) - 2025E: HKD 296.1 billion (24.8% YoY growth) - 2026E: HKD 340.6 billion (15.0% YoY growth) [1][6]. - **Net Profit Forecast**: - 2023: HKD 5.2 billion - 2024E: HKD 15.1 billion (191.3% YoY growth) - 2025E: HKD 11.8 billion (-21.4% YoY decline) - 2026E: HKD 15.1 billion (27.2% YoY growth) [1][6]. - **Earnings Per Share (EPS)**: - 2024E: HKD 0.51 - 2025E: HKD 1.49 - 2026E: HKD 1.18 [1][6]. - **Price-to-Earnings (P/E) Ratio**: - 2024E: 8.9 - 2025E: 11.3 - 2026E: 8.9 [1][6]. - **Price-to-Book (P/B) Ratio**: - 2024E: 1.7 - 2025E: 1.4 - 2026E: 1.2 [1][6]. Market Positioning - Geely is positioned to benefit from its comprehensive resource layout in global operations, self-developed intelligent driving, and chip technology, which are expected to enhance its competitive edge in the electric vehicle market [1][5].