Ge Long Hui·2025-12-24 22:06Core Viewpoint - Geely Auto has completed the privatization and merger of Zeekr, making it a wholly-owned subsidiary, which is expected to enhance profits and achieve cost reduction through strategic integration [1] Group 1: Privatization and Financial Impact - The privatization of Zeekr is anticipated to increase Geely's net profit by 2-3 billion yuan by 2026 [1] - Following the privatization, Geely's ownership of Zeekr and Lynk & Co has increased to 100%, facilitating better integration of its four brands: Geely, Galaxy, Lynk & Co, and Zeekr [1] Group 2: New Product Launches and Sales Growth - Geely has entered a strong new product cycle, launching competitive models such as Galaxy A7, Galaxy Star 8, Galaxy Star 6, Galaxy M9, Lynk & Co 10, Lynk & Co 900, and Zeekr 9X [1] - The sales of new models have been robust, with Galaxy A7 and Galaxy Star 8 achieving monthly sales of over 15,000 and 10,000 units respectively [1] - The company expects to introduce 1-2 new models each quarter, maintaining a strong product pipeline [1] Group 3: Sales and Profitability Forecast - In November, Geely achieved sales of 310,000 vehicles, a year-on-year increase of 24% and a month-on-month increase of 1.1% [1] - Projected sales for 2025-2027 are 3.06 million, 3.70 million, and 3.99 million vehicles, representing year-on-year growth of 40%, 21%, and 8% respectively [1] - The introduction of mid-to-high-end models is expected to significantly enhance the company's product structure, leading to higher average selling prices (ASP) and gross margins [1] Group 4: Valuation and Investment Recommendation - Geely is considered one of the top picks for the upcoming recovery in the automotive sector due to its low valuation and strong growth potential [2] - The company's projected net profit for 2025-2027 has been revised upwards to 18.6 billion, 26.3 billion, and 31.6 billion yuan, with corresponding price-to-earnings (PE) ratios of 8.8, 6.3, and 5.2 [2] - A target price of 27.01 HKD is set for 2026, indicating a potential upside of 60%, maintaining a "strong buy" rating [2]