Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [4]. Core Views - The company has set an ambitious annual sales target of 3 million vehicles, reflecting confidence in its growth trajectory, particularly in the new energy vehicle (NEV) segment, which has shown significant year-on-year growth [2][4]. - The company reported a total wholesale volume of 236,000 vehicles in June, a year-on-year increase of 42.1%, with NEV sales reaching 122,367 units, up 85.5% year-on-year [1][2]. - The introduction of new models, such as the Galaxy A7 and M9, is expected to enhance the company's market position and drive sales growth in the coming years [2][3]. Summary by Sections Sales Performance - In the first half of the year, the company achieved a total wholesale volume of 1.409 million vehicles, representing a 47.4% increase year-on-year [1]. - The NEV segment accounted for 725,000 units sold in the first half, marking a 126.5% increase compared to the same period last year [2]. Product Development - The Galaxy A7 is set to launch in Q3 2025, featuring advanced hybrid technology and a comprehensive range of 2,100 kilometers on a full charge [2]. - The Galaxy M9, a large six-seat plug-in hybrid SUV, is also expected to debut in Q3 2025, equipped with cutting-edge driving assistance systems [2][3]. Financial Projections - Revenue forecasts for 2025-2027 are projected at 404.8 billion, 489.7 billion, and 572.8 billion RMB, respectively, with net profits expected to reach 16.2 billion, 22.1 billion, and 26.0 billion RMB [4][5]. - The earnings per share (EPS) is anticipated to grow from 1.61 RMB in 2025 to 2.58 RMB by 2027, reflecting a positive trend in profitability [4][5]. Strategic Moves - The company plans to privatize its high-end brand, Zeekr, to streamline operations and enhance resource allocation, which is expected to improve overall efficiency and competitiveness [3][4].

Core Insights - Zeekr Group reported a total delivery of 43,012 vehicles in June 2025, with Zeekr brand contributing 16,702 vehicles and Lynk & Co accounting for 26,310 vehicles [2] - Year-to-date deliveries reached 244,877 vehicles, marking a 14.5% increase compared to the same period last year [2] - The company has a cumulative user base of 1.99 million, reflecting strong market trust and support [2] Company Overview - Zeekr Group, headquartered in Zhejiang, China, is a leading premium new energy vehicle group under Geely Holding Group [3] - The company operates two brands, Lynk & Co and Zeekr, and aims to create a fully integrated user ecosystem with a focus on innovation [3] - Zeekr Group is developing its own software systems, e-powertrain, and electric vehicle supply chain, emphasizing values of equality, diversity, and sustainability [3]

Core Viewpoint - Geely Automobile has shown impressive financial performance in Q1 2025, with revenue of 72.5 billion and a net profit of 2.28 billion, indicating significant growth in both revenue and profit compared to the previous year [1][2]. Financial Performance - In Q1 2025, Geely's revenue reached 72.5 billion, a year-on-year increase of 25% [1]. - The net profit, excluding other income of 35.9 billion, was 2.28 billion, reflecting a 134% year-on-year growth [1][2]. - The company delivered 704,000 vehicles in the quarter, marking a 47.6% increase year-on-year [1]. Market Position and Valuation - Despite strong performance, Geely's price-to-earnings ratio is below 10, and S&P has downgraded its rating to negative due to debt pressure and market competition [2]. - There is speculation that if Geely can challenge BYD's leading position in the new energy vehicle market, its market capitalization could reach 1 trillion, five times its current value [2]. Sales Performance - Geely's sales target for 2023 was 1.65 million vehicles, which was exceeded with actual sales of nearly 1.69 million [5]. - For 2024, the sales target was set at 1.9 million, which was later raised to 2 million, with actual sales reaching 2.18 million, a 29.1% increase [6]. - In the first five months of 2025, Geely's cumulative sales reached 1.173 million, a 48.6% increase year-on-year, representing 43.3% of the annual target [7][9]. New Energy Vehicle Strategy - Geely's new energy vehicle sales have seen significant growth, with a penetration rate approaching 50% by Q1 2025 [11][15]. - The company has adopted a "two-legged" approach, focusing on both pure electric and plug-in hybrid vehicles [16][20]. - In 2023, plug-in hybrid vehicle sales surged, accounting for 45.2% of Geely's new energy vehicle sales by Q4 [17]. Brand Development - Geely's premium brand, Zeekr, has faced challenges, with sales growth slowing in 2025 [30][31]. - The company has acquired a majority stake in Lynk & Co to bolster its market position [34]. - The newly launched Galaxy series has become a key driver of sales growth, contributing significantly to Geely's overall performance [41]. Conclusion - Geely's strong financial results and strategic positioning in the new energy vehicle market highlight its potential for future growth, despite facing challenges in market competition and brand performance [43][44].

Core Viewpoint - Zeekr Group reported strong delivery results for May 2025, showcasing significant year-over-year and month-over-month growth in vehicle deliveries [2]. Delivery Performance - In May 2025, Zeekr Group delivered a total of 46,538 vehicles, marking a 15.2% increase year-over-year and a 12.6% increase compared to April 2025 [2]. - The Zeekr brand accounted for 18,908 vehicle deliveries, while Lynk & Co contributed 27,630 vehicles [2]. Company Overview - Zeekr Group, headquartered in Zhejiang, China, is a leading premium new energy vehicle group under Geely Holding Group, focusing on creating a fully integrated user ecosystem [3]. - The company operates two brands, Lynk & Co and Zeekr, and is committed to innovation, sustainability, and diversity [3]. - Zeekr Group is developing its own software systems, e-powertrain, and electric vehicle supply chain to enhance its market position [3].

Core Insights - Zeekr Group has published its 2024 Sustainability report, highlighting its commitment to sustainable innovation, dual carbon management, and proactive governance [1] Company Overview - Zeekr Group, headquartered in Zhejiang, China, is a leading premium new energy vehicle group under Geely Holding Group, with brands Lynk & Co and Zeekr [2] - The company aims to create a fully integrated user ecosystem, focusing on innovation, and is developing its own software systems, e-powertrain, and electric vehicle supply chain [2] - Zeekr Group values equality, diversity, and sustainability, with the ambition to become a global new energy mobility solution provider [2]

Core Viewpoint - The domestic automotive market in 2024 is characterized by "differentiation," with the new energy vehicle (NEV) sector showing a dual differentiation in sales and profits, highlighting the importance of identifying long-term players amidst rapid market changes [1] Group 1: Company Performance - Zeekr Technology reported Q1 2025 total revenue of 22 billion yuan, with vehicle sales revenue of 19.1 billion yuan, a year-on-year increase of 16.1% [1] - The gross margin for vehicle sales reached 16.5%, up by 3.4 percentage points year-on-year, while the comprehensive gross margin hit a historical high of 19.1% [1] - Zeekr Technology achieved a profit of 510 million yuan in Q1, marking three consecutive quarters of profitability [1] Group 2: Market Positioning - Zeekr and Lynk & Co have clear brand positioning, with Zeekr focusing on the luxury market above 300,000 yuan and Lynk & Co targeting the high-end market above 200,000 yuan [2] - The sales volume for Zeekr Technology reached 114,011 units in Q1, with April sales at 41,316 units, reflecting a year-on-year growth of 18.7% [2] - The product matrix includes models like Zeekr 001, 009, 007GT, and Lynk & Co 900, which have significant market influence [2] Group 3: Consumer Trends - The future of the automotive market is expected to see a shift towards replacement purchases, with an estimated 80% of car buyers opting for upgrades by 2030 [4] - The Z generation, comprising 250 million people with a consumption scale of 5.97 trillion yuan, is emerging as a key demographic for the NEV market [4] - The Zeekr 007GT is positioned as a luxury tech vehicle for young consumers, addressing diverse needs such as personal enjoyment and family travel [4] Group 4: Technological Innovation - Zeekr Technology is enhancing its competitive edge through technological advancements, including the "Qianli Haohan" intelligent driving solution and the integration of the Thor chip in new models [7] - The company is addressing consumer concerns about range anxiety with the "Shen Dun Jin Zhuang" battery technology, which will undergo further upgrades this year [7][8] - Zeekr is also improving charging efficiency and building an ecological charging network to enhance user experience [8] Group 5: Global Expansion - Zeekr has established a positive reputation in emerging markets such as Hong Kong, Macau, and Southeast Asia, while Lynk & Co has been successful in the European market [8] - The integration of resources between Zeekr and Lynk & Co is expected to enhance product offerings in terms of quality, technology, and cost [8] - The current era presents both opportunities and challenges for the NEV industry, with a focus on companies that can achieve sustainable growth through scale, technology, and ecosystem [8]

Core Viewpoint - Geely Automobile is undergoing a significant restructuring and integration process, particularly with the privatization of Zeekr, aiming to consolidate resources and enhance competitiveness in the rapidly evolving electric vehicle market [2][3][10]. Group 1: Integration and Restructuring - The integration between Geely and Zeekr was announced just eight days after the privatization offer, highlighting the urgency in the current market environment [2][3]. - Geely has established four main brands post-integration: Zeekr (global luxury tech), Lynk & Co (global high-end new energy), Galaxy (mainstream new energy), and China Star (mainstream fuel vehicles) [3][10]. - The goal of the merger is to eliminate redundant investments and reduce costs, targeting production cost reductions of over 3%, R&D optimization of 10-20%, and management efficiency improvements of 10-20% [3][20]. Group 2: Financial Implications - Geely's Q1 2025 financial results showed revenue of 72.5 billion RMB, a 25% year-on-year increase, and a net profit of 5.67 billion RMB, up 264% [9][23]. - The privatization of Zeekr is estimated to cost Geely over 2 billion USD to acquire the remaining 34.3% of shares, raising concerns about cash flow pressures [9][10]. - Geely's cash reserves were reported at 35.2 billion RMB, significantly lower than BYD's, and decreased by approximately 7.8 billion RMB from the previous quarter [9][10]. Group 3: Management Changes - Following the merger, An Conghui will transition from CEO of Zeekr to CEO of Geely Holding Group, while Gan Jiayue will become CEO of the newly formed Geely Automobile Group [12][16]. - The restructuring includes the introduction of a rotating presidency system, aimed at fostering leadership talent and reducing decision-making errors [18][19]. Group 4: Challenges and Future Outlook - The integration process has faced challenges, including communication costs and differing employee incentive mechanisms between Geely and Zeekr [20][23]. - Despite achieving profitability in the latest quarter, Zeekr has accumulated significant losses over the past few years, totaling over 26 billion RMB [23]. - Geely aims to achieve a growth target exceeding 5% and improve efficiency in R&D and management by 15-20% [21][22].

Core Viewpoint - The company reported strong performance in Q1 2025, with significant increases in sales, revenue, and net profit, indicating a positive growth trajectory and effective operational strategies [1][2][3]. Sales and Revenue Performance - In Q1 2025, total sales reached 704,000 units, a year-on-year increase of 47.9% and a quarter-on-quarter increase of 2.5% [1][2]. - Total revenue for Q1 2025 was 72.5 billion yuan, reflecting a year-on-year growth of 24.5% [1][2]. - The sales of new energy vehicles (NEVs) amounted to 339,000 units, representing a year-on-year increase of 135.4% [2]. Profitability and Cost Management - The gross margin for Q1 2025 was 15.8%, a slight increase of 0.2 percentage points year-on-year [3]. - The company experienced a significant reduction in expense ratios, with sales, administrative, and R&D expense ratios at 5.0%, 1.9%, and 4.6%, respectively, all showing year-on-year declines [3]. - The net profit attributable to shareholders was 5.67 billion yuan, a remarkable year-on-year increase of 263.4% [1][3]. Strategic Developments - The company announced plans to privatize its subsidiary, Zeekr, which would enhance resource integration and operational efficiency [4]. - The privatization is expected to align with the company's strategic focus on enhancing brand competitiveness in the high-end electric vehicle market [4]. Future Projections - Revenue forecasts for 2025-2027 are projected at 404.78 billion yuan, 489.69 billion yuan, and 572.83 billion yuan, respectively [5]. - Net profit estimates for the same period are 16.21 billion yuan, 22.09 billion yuan, and 25.98 billion yuan, indicating a robust growth outlook [5][7].

Core Viewpoint - Geely Automobile Holdings Limited is undergoing a significant restructuring by privatizing Zeekr Intelligent Technology, aiming to consolidate its brands and resources to enhance competitiveness in the evolving automotive market [1][4]. Group 1: Merger and Integration - The merger between Geely and Zeekr was announced just eight days after the privatization offer, indicating a swift response to market conditions [1]. - Geely plans to establish two main divisions post-merger: the Galaxy Division and the Zeekr Division, with four primary brands: Zeekr (global luxury tech), Lynk & Co (high-end new energy), Galaxy (mainstream new energy), and China Star (mainstream fuel) [2]. - The merger aims to eliminate redundant investments and reduce costs, targeting production cost reductions of over 3%, R&D optimization of 10-20%, and management efficiency improvements of 10-20% [2][11]. Group 2: Financial Performance and Projections - Geely reported a revenue of 72.5 billion RMB for Q1 2025, a 25% year-on-year increase, and a net profit of 5.67 billion RMB, up 264% [4]. - The cash reserves of Geely as of March 31, 2025, were 35.2 billion RMB, approximately one-third of BYD's cash reserves, indicating potential liquidity pressure [4]. - The privatization of Zeekr is expected to allow investors to exchange shares, reducing the cash outflow required for the merger and enabling Geely to allocate more funds for core business development [5]. Group 3: Management Changes - Following the merger, An Conghui will transition from managing Zeekr to becoming the CEO of Geely Holdings, while Gan Jiayue will take over as CEO of the merged Geely Automobile Group [2][9]. - The introduction of a rotating presidency system within Geely aims to prevent power concentration and foster leadership talent, although it may lead to strategic inconsistencies [9][10]. - The restructuring reflects Geely's historical pattern of consolidation, with the last major integration occurring in 2014, which significantly improved its market position [2][7]. Group 4: Challenges and Future Outlook - The integration process has faced challenges, including communication costs and differing employee incentive mechanisms between the two companies [11]. - Despite recent profitability, Zeekr has accumulated significant losses over the past few years, which will impact Geely's financial statements post-merger [13]. - The company aims to achieve a growth target exceeding 5% and improve R&D and management efficiency by 15-20% [11].

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].