GEELY AUTO(00175) 国泰君安证券·2024-07-03 07:01Investment Rating - The report maintains a "Buy" rating for Geely Automobile (00175 HK) and slightly raises the target price to HK8.480 [2][4]. Core Insights - Geely's sales volume for the first half of 2024 is expected to exceed 2 million units annually, driven by strong performance in mid-to-high-end electric vehicle brands and overseas markets [1][4]. - The company reported a significant year-on-year revenue increase of 56.1% to RMB 52.3 billion in Q1 2024, with net profit soaring by 250.1% to RMB 1.42 billion [1][4]. - The penetration rate of new energy vehicles (NEVs) rose by 10.5 percentage points to 33.5% in the first half of 2024, with high-end brand Zeekr achieving a 106.1% year-on-year sales growth [1][4]. Summary by Sections Financial Performance - In Q1 2024, Geely's revenue reached RMB 52.3 billion, a 56.1% increase year-on-year, while gross margin slightly decreased by 0.5 percentage points to 13.7% due to increased sales discounts amid intensified competition [1][4]. - The net profit attributable to shareholders for Q1 2024 was RMB 1.42 billion, marking a substantial increase of 250.1% compared to the previous year [1][4]. Sales and Market Expansion - Geely's NEV sales strategy continues to gain traction, with the Zeekr brand selling 87,870 units in the first half of 2024, a 106.1% increase year-on-year, positioning it among the top new energy vehicle manufacturers [1][4]. - The Galaxy series also performed well, with sales reaching 81,421 units in the first half of 2024, establishing it as a popular mid-to-high-end brand in the domestic market [1][4]. Product Development and Future Outlook - Geely plans to launch several new models in the second half of 2024, including the Galaxy E5 electric SUV and the Lynk & Co Z10, which are expected to further strengthen its mid-to-high-end brand strategy [1][4]. - The company is also focusing on expanding its overseas market presence, with export sales in the first half of 2024 increasing by 62.9% to 197,428 units [1][4].