Zhi Tong Cai Jing·2025-12-23 09:30Core Viewpoint - Geely Automobile's recent privatization of Zeekr is expected to enhance profitability and streamline operations, leading to increased net profit forecasts for 2025-2027 [1][2]. Group 1: Financial Projections - Geely's net profit estimates for 2025, 2026, and 2027 have been revised upwards to 18.6 billion, 26.3 billion, and 31.6 billion yuan, respectively, with corresponding PE ratios of 8.8x, 6.3x, and 5.2x [1]. - The completion of Zeekr's privatization is anticipated to add 2-3 billion yuan to Geely's net profit in 2026 [2]. - The company expects net profit margins to improve, with projections of 5.5%, 5.9%, and 6.4% for 2025, 2026, and 2027, respectively [4]. Group 2: Sales and Market Performance - Geely's sales reached 310,000 units in November, reflecting a year-on-year increase of 24% and a month-on-month increase of 1.1% [4]. - The company forecasts total sales of 3.06 million, 3.70 million, and 3.99 million units for 2025, 2026, and 2027, representing year-on-year growth of 40%, 21%, and 8% [4]. - The introduction of new models, including the Galaxy A7 and Galaxy M9, is expected to maintain a strong product cycle, with anticipated monthly sales of over 10,000 units for high-end models [3]. Group 3: Strategic Initiatives - The integration of Zeekr, Lynk & Co, and other brands under Geely is expected to create synergies that will lower costs and enhance efficiency [2]. - The company is focusing on high-end models, which are projected to significantly improve product structure and profitability [4]. - Geely is positioned as a preferred stock for potential valuation recovery in the automotive sector, given its strong growth and low valuation compared to peers [5].