Ge Long Hui·2025-05-27 02:31Core Viewpoint - Geely Automobile reported a significant increase in Q1 2025 performance, achieving a net profit of 5.67 billion yuan, a year-on-year growth of 263.6%, and a record sales volume of 704,000 vehicles, up 48% year-on-year, driven by strong growth in the new energy sector and optimized product structure [1][2]. Financial Performance - In Q1 2025, the company achieved operating revenue of 72.5 billion yuan, a year-on-year increase of 24.5%, and a net profit attributable to shareholders of 5.67 billion yuan, reflecting a substantial year-on-year growth of 263.6% [2]. - The record sales volume was primarily due to strong performance in new energy vehicle sales, which reached 339,000 units, representing a year-on-year increase of 135% [2]. - The company benefited from a favorable exchange rate, contributing a net income of 2-2.3 billion yuan after tax, mainly due to rapid growth in export business [2]. Sales and Cost Efficiency - The sales and administrative expense ratios decreased significantly, indicating initial success from the integration of Lynk & Co and Zeekr, with expected production cost savings exceeding 3% and R&D cost reductions of 10-20% [3]. - The gross profit margin for Q1 2025 was 15.8%, a slight increase of 0.2 percentage points year-on-year, while the sales, administrative, and R&D expense ratios were 5.0%, 2.0%, and 4.6%, respectively, showing a decrease in sales and administrative expenses [3]. Strategic Moves - The company plans to privatize Zeekr, proposing a non-binding offer of $25.66 per ADS or 12.3 shares of newly issued Zeekr stock, which represents a premium of 13.6% over the last closing price [4]. - This privatization is expected to create a unified listing platform and enhance operational efficiency by integrating Zeekr's assets and resources, aligning with the "One Geely" strategy [4]. Future Outlook - Geely is set to launch over 10 new models in 2025, including five new vehicles under the Galaxy brand and two new models from Lynk & Co, with the first Galaxy model already launched [5]. - The company anticipates a strong operational momentum throughout 2025, supported by advanced intelligent driving solutions and a robust product lineup [5]. - Profit forecasts for 2025-2027 project net profits of 16.094 billion, 19.457 billion, and 22.450 billion yuan, with corresponding P/E ratios of 12.7, 10.5, and 9.1, maintaining a "buy" rating [5].