2024-08-27 14:49Investment Rating - The report maintains a "Buy" rating for Geely Automobile (175 HK) with a target price of HKD 12.50, indicating a potential upside of 58.6% from the current closing price of HKD 7.88 [1][2][7]. Core Insights - Geely's performance in the first half of 2024 met expectations, with revenue reaching RMB 107.3 billion, a year-on-year increase of 46.6%. Vehicle sales grew by 41% to 956,000 units, driven by low base effects from the previous year and strong sales from new models [1][5]. - The gross margin improved to 15.1% from 14.4% in the same period last year, attributed to better product mix and cost control. Operating profit surged by 149.3% year-on-year, supported by significant revenue growth and improved gross margins [1][5]. - The report highlights the upcoming launch of six new energy vehicle models in the second half of the year, which, along with an accelerated export strategy, is expected to further enhance sales performance [2][5]. Financial Summary - For the first half of 2024, Geely's revenue was RMB 107.3 billion, with a gross profit of RMB 16.2 billion, reflecting a gross margin of 15.1%. The net profit attributable to shareholders was RMB 10.6 billion, a staggering increase of 574.7% year-on-year [1][5]. - The report provides a financial outlook, projecting revenues of RMB 210.9 billion for 2024, with a year-on-year growth rate of 17.7%. Net profit is expected to reach RMB 6.5 billion, with earnings per share projected at RMB 0.65 [3][8].