2024-08-26 13:44Investment Rating - The report maintains a "Buy" rating for Geely Automobile [4] Core Views - Geely Automobile has reached an operational turning point, with sales driving profit growth [4] - The company reported a revenue of HKD 107.3 billion for H1 2024, a year-on-year increase of 47% [4] - The gross profit margin improved to 15.1%, up 0.7 percentage points year-on-year, with Q2 gross margin at 16.5%, reflecting a quarter-on-quarter improvement of 2.84 percentage points [4] - The company delivered 956,000 vehicles in H1 2024, a 41% increase year-on-year, with new energy vehicle sales reaching 320,000, up 116.9% [4] - Geely's sales in China were 758,000 units, a 35% increase year-on-year, ranking second among domestic brands [4] - The report anticipates the establishment of 3-4 KD factories in H2 2024 to enhance global presence [4] - The company is entering a new vehicle cycle, with several new models expected to launch, which will support further sales growth [4] Summary by Sections Financial Performance - H1 2024 revenue was HKD 107.3 billion, with a net profit attributable to shareholders of HKD 10.6 billion, a significant increase of 574.7% year-on-year [4] - The adjusted net profit, excluding one-time gains, was HKD 3.37 billion, a 114.4% increase year-on-year [4] - The average selling price (ASP) per vehicle was HKD 105,000, a slight increase of HKD 4,000 year-on-year [4] Future Outlook - The report projects revenue growth for 2024-2026, increasing estimates from HKD 217.2 billion, HKD 246.4 billion, and HKD 271.4 billion to HKD 224 billion, HKD 257.5 billion, and HKD 285.3 billion respectively [4] - Net profit forecasts were adjusted from HKD 7.4 billion, HKD 9.1 billion, and HKD 11 billion to HKD 14 billion, HKD 9.5 billion, and HKD 11.6 billion respectively for the same period [4] - The report emphasizes the importance of the profitability of the Galaxy brand and the performance of the Zeekr brand in maintaining competitive advantage in the market [4]