Core Viewpoint - ZEEKR Intelligent Technology Holding Limited has announced strategic integration transactions with various Geely entities, which include equity transfers and capital injections aimed at strengthening its position in the electric vehicle market [1][2][4]. Group 1: Strategic Integration Transactions - ZEEKR will acquire a 20% interest in LYNK & CO from Geely Holding for RMB3.6 billion and a 30% interest from VCI for RMB5.4 billion, with accrued interests from September 30, 2024 [2]. - The acquisition is subject to approval from independent shareholders of Geely Auto and Volvo [3]. - ZEEKR plans to fund the acquisition using its cash reserves and external financing [3]. Group 2: Capital Injection - ZEEKR will subscribe for increased registered capital in LYNK & CO at a price of RMB367,346,940, resulting in ZEEKR owning 51% of LYNK & CO post-transaction [4]. - Completion of the capital injection is also contingent on shareholder approvals and the completion of the equity transfer [5]. Group 3: Financial Consolidation - Upon completion of the transactions, LYNK & CO will become an indirect non-wholly-owned subsidiary of ZEEKR, and its financial results will be consolidated into ZEEKR's financial statements [6]. Group 4: Board and Advisory - ZEEKR's board formed a committee of independent directors to evaluate the transactions, which received a fairness opinion from its financial advisor, confirming the financial fairness of the transactions [7]. Group 5: Shareholding Changes - Geely International will sell approximately 11.3% of ZEEKR's issued share capital for US$806.1 million (approximately RMB5.84 billion), increasing Geely Auto's shareholding in ZEEKR to approximately 62.8% [9].

Core Insights - ZEEKR Intelligent Technology Holding Limited reported a strong performance in Q3 2024, with total vehicle deliveries reaching 55,003 units, a 51% year-over-year increase [2][10] - The company achieved vehicle sales of RMB 14,401.3 million (US$ 2,052.2 million) in Q3 2024, marking a 42% increase from Q3 2023 and a 7.2% increase from Q2 2024 [12][10] - Despite the growth in deliveries and sales, the vehicle margin decreased to 15.7% from 18.1% in Q3 2023, attributed to a lower average selling price due to product mix changes [3][18] Operating Highlights - Total vehicle deliveries for Q3 2024 were 55,003 units, compared to 36,395 units in Q3 2023, reflecting a significant increase [2] - Monthly deliveries in October 2024 reached 25,049 units, a 92% increase from October 2023 [9] Financial Highlights - Total revenues for Q3 2024 were RMB 18,358.0 million (US$ 2,616.0 million), a 30.7% increase from RMB 14,044.6 million in Q3 2023, but an 8.4% decrease from Q2 2024 [3][11] - Gross profit for Q3 2024 was RMB 2,941.8 million (US$ 419.2 million), up 28.5% from RMB 2,289.4 million in Q3 2023, but down 14.7% from Q2 2024 [4][16] - The net loss for Q3 2024 was RMB 1,139.1 million (US$ 162.3 million), a decrease of 21.7% from RMB 1,455.7 million in Q3 2023 and a decrease of 37.0% from Q2 2024 [6][22] Cost and Margin Analysis - Cost of revenues for Q3 2024 was RMB 15,416.2 million (US$ 2,196.8 million), a 31.1% increase from RMB 11,755.2 million in Q3 2023 [15] - Gross margin for Q3 2024 was 16.0%, slightly down from 16.3% in Q3 2023 and 17.2% in Q2 2024 [4][17] - Vehicle margin decreased to 15.7% in Q3 2024 from 18.1% in Q3 2023, primarily due to lower average selling prices [18] Research and Development - Research and development expenses for Q3 2024 were RMB 1,966.2 million (US$ 280.2 million), a decrease of 2.6% from RMB 2,018.1 million in Q3 2023 [19] - The decrease in R&D expenses was attributed to a one-off large quantity of share-based compensation expenses in the previous quarter [19] Recent Developments - ZEEKR launched the ZEEKR MIX on October 23, 2024, a family-oriented vehicle designed for everyday use, featuring innovative space utilization and flexible seating arrangements [9][10] - The company continues to focus on expanding its product lineup and enhancing its market position [10]

Core Viewpoint - Zeekr Intelligent Technology (ZK) shows potential for upside based on analysts' price targets and earnings estimate revisions, with a mean price target of $31.73 indicating a 27.8% upside from the current price of $24.83 [1] Price Targets - The average price target consists of six estimates ranging from a low of $24 to a high of $37, with a standard deviation of $4.42, indicating variability among analysts [2] - The lowest estimate suggests a decline of 3.3%, while the highest indicates a potential upside of 49% [2] - A low standard deviation signifies a higher agreement among analysts regarding price movement [7] Analysts' Insights - Analysts are optimistic about ZK's earnings prospects, as indicated by upward revisions in earnings estimates, which historically correlate with stock price movements [9] - Over the past 30 days, the Zacks Consensus Estimate for the current year has increased by 5%, with no negative revisions [10] - ZK holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong potential for upside [11]

Group 1 - Zeekr's deliveries surged by 92% in October, reaching a record of 25,049 vehicles, surpassing the previous record of 21,333 in September [1] - Zeekr's total deliveries for the year have approached 168,000 vehicles [1] - The company aims to deliver 230,000 cars in 2024, requiring over 31,000 deliveries in both November and December [2] Group 2 - Xpeng delivered 23,917 vehicles in October, marking its second consecutive month of record deliveries [2] - Li Auto delivered 51,443 cars in October, slightly below its record month in September [2] - Xiaomi delivered over 20,000 electric vehicles in October, with a total of more than 75,000 cars delivered since launching its first model in late March [3]

Core Insights - ZEEKR reported a significant increase in vehicle deliveries, with 25,049 vehicles delivered in October 2024, marking a 92% year-over-year growth [2] - Year-to-date deliveries reached 167,922 vehicles, representing an 82% increase compared to the same period last year [2] - Cumulative deliveries as of October 2024 totaled 364,555 vehicles [2] Product Launch - On October 23, 2024, ZEEKR launched the ZEEKR MIX, a family-oriented vehicle designed for everyday use [3] - The ZEEKR MIX features innovative design elements, including a 93% in-cabin space utilization and industry-first double sliding doors for enhanced accessibility [3] - The vehicle includes versatile seating arrangements and safety features, such as ultra-high-strength steel pillars embedded within the doors [3] Company Overview - ZEEKR is a premium electric mobility technology brand under Geely Holding Group, focusing on creating a fully integrated user ecosystem [4] - The company operates R&D centers and design studios in multiple locations, including Ningbo, Hangzhou, Gothenburg, and Shanghai [5] - ZEEKR has developed a diverse product portfolio, including models like the ZEEKR 001, ZEEKR 009, and ZEEKR X, with plans for global market expansion over the next five years [5]

Core Viewpoint - Zeekr Intelligent Technology (ZK) has seen a significant stock price increase of 33.5% over the past four weeks, closing at $22, with analysts projecting a potential upside to a mean price target of $31.73, indicating a 44.2% increase from the current price [1] Price Targets and Analyst Consensus - The average price target for ZK is based on six short-term estimates, ranging from a low of $24 to a high of $37, with a standard deviation of $4.42, suggesting a moderate agreement among analysts [1] - The lowest estimate indicates a 9.1% increase, while the highest suggests a 68.2% upside, highlighting the variability in analyst predictions [1] - Analysts' ability to set price targets has been questioned, as they may set overly optimistic targets influenced by business relationships, which can mislead investors [3][4] Earnings Estimates and Stock Performance - Analysts have shown strong agreement in revising ZK's earnings estimates higher, which correlates with potential stock price increases [5] - The Zacks Consensus Estimate for the current year has risen by 5% over the past month, with no negative revisions, indicating positive sentiment [5] - ZK holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, further supporting the stock's potential upside [5]

Core Insights - ZEEKR reported a significant increase in vehicle deliveries, with 21,333 vehicles delivered in September 2024, marking a 77% year-over-year growth [2] - Year-to-date deliveries reached 142,873 vehicles, representing an 81% increase compared to the same period last year [2] - Cumulative deliveries as of September 2024 totaled 339,506 vehicles since the brand's inception in October 2021 [2][5] Product Launch - On September 20, 2024, ZEEKR unveiled its premium electric five-seater SUV, the ZEEKR 7X, with deliveries starting the following day [3] - The ZEEKR 7X is designed to combine luxurious comfort with robust off-road capabilities, suitable for both urban and challenging environments [3] Company Overview - ZEEKR is a global premium electric mobility technology brand under Geely Holding Group, focusing on creating a fully integrated user ecosystem [4] - The company utilizes Sustainable Experience Architecture (SEA) and develops its own battery technologies, battery management systems, and electric vehicle supply chains [4] - ZEEKR operates R&D centers and design studios in multiple locations, including Ningbo, Hangzhou, Gothenburg, and Shanghai [5] - The brand has ambitious plans for global market expansion and aims to meet the rapidly growing demand for electric vehicles over the next five years [5]

After a euphoric rally in electric vehicle stocks after the pandemic, there has been a reversal in trend. In the last 12 to 18 months, EV stock has trended lower. This correction has been backed by headwinds that include macroeconomic Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensati ...

ZEEKR Intelligent Technology Today ZK ZEEKR Intelligent Technology $15.62 -0.33 (-2.07%) 52-Week Range $13.00 ▼ $32.24 Price Target $31.85 Add to Watchlist ZEEKR Intelligent Technology Holding Ltd. NYSE: ZK is a subsidiary of Geely Automotive Holdings Ltd. OTCMKTS: GELYY based in China. It sells luxury battery electric vehicles (BEVs) and sports utility vehicles (SUVs) throughout China and Europe. The company leverages Geely Automotive's manufacturing capabilities, global network, and resources, enabling it ...

HANGZHOU, China, Sept. 1, 2024 /PRNewswire/ -- ZEEKR Intelligent Technology Holding Limited ("ZEEKR" or the "Company") (NYSE: ZK), a fast-growing intelligent battery electric vehicle ("BEV") technology company, today announced its delivery results for August 2024. ZEEKR delivered 18,015 vehicles in August 2024, marking a 46% year-over-year increase. Year-to-date, ZEEKR has delivered 121,540 vehicles in 2024, representing 81% growth compared to the same period last year. By the end of August 2024, ZEEKR's cu ...