Zhi Tong Cai Jing·2025-11-18 09:23Core Viewpoint - Morgan Stanley's report indicates that Geely Automobile's Q3 performance meets expectations and is on track to achieve its annual targets, maintaining an "Overweight" rating with a target price of HKD 24 [1] Financial Performance - Geely's Q3 net profit reached RMB 3.8 billion, a 6% quarter-on-quarter increase and a 58% year-on-year increase, slightly exceeding Morgan Stanley's expectation of RMB 3.7 billion and aligning with market expectations [1] - Excluding foreign exchange gains and impairment losses, the core net profit for the last quarter was RMB 4 billion, up from RMB 3.2 billion in the previous quarter [1] - For the first three quarters, core net profit rose 59% to RMB 10.6 billion, moving towards the annual target of RMB 15 billion [1] Revenue and Sales - Geely's revenue increased by 26% year-on-year and by 15% quarter-on-quarter to RMB 89 billion, driven by an 8% increase in sales volume [1] - The average selling price showed mid-single-digit growth quarter-on-quarter [1] Profitability Metrics - Gross margin improved by 1.2 percentage points year-on-year, while operating expenses rose by 8% quarter-on-quarter, attributed to the launch of new models (Galaxy M9/A7 and Zeekr 9X) and higher restructuring costs [1] - Excluding contributions from Zeekr, Geely's profit per vehicle was RMB 5,900, down from RMB 6,300 in the previous quarter [1]