Zhi Tong Cai Jing·2025-08-18 06:34Core Viewpoint - Zhongyin International's report indicates that Geely Automobile (00175) experienced a 7.3% quarter-on-quarter revenue growth in Q2, while sales remained flat. Core net profit slightly decreased from 3.5 billion RMB in Q1 to 3.2 billion RMB, aligning with expectations. The firm is optimistic about Geely's potential to narrow the gap with current electric vehicle leaders due to its expanding domestic market share, upcoming overseas expansion, and leadership in smart electric vehicle technology. The "buy" rating is reiterated, with the target price raised from 29 HKD to 32 HKD [1]. Financial Performance - Geely's Q2 revenue grew by 7.3% quarter-on-quarter, while sales remained stable [1]. - Core net profit decreased from 3.5 billion RMB in Q1 to 3.2 billion RMB, which is in line with expectations [1]. Future Projections - The firm maintains its 2025 net profit forecast at 15 billion RMB, while increasing the 2026 net income forecast by 13% to 20 billion RMB. This adjustment reflects the anticipated increase in sales from the Galaxy series and overseas markets, as well as improved profit margins from the "One Geely" strategy and scale expansion [1]. - The report highlights that Geely's current valuation is significantly discounted and does not fully reflect its potential to challenge BYD (002594) for market dominance in the foreseeable future [1].