GEELY AUTO(HK:00175) Huachuang Securities·2024-10-25 08:40Investment Rating - The report maintains a "Strong Buy" rating for Geely Automobile (00175.HK) with a target price range of HKD 16.5-18.9, compared to the current price of HKD 13.90 [1][5][9]. Core Views - Geely's electric and intelligent transformation is accelerating with the launch of the Zeekr MIX, which targets young families seeking innovative and spacious electric vehicles. The estimated market potential for this model is around 500,000 units annually [1][5]. - The report anticipates significant growth in Geely's sales and profitability over the next few years, driven by the introduction of new models and the company's strategic resource allocation [1][5]. - The expected sales volume for Geely from 2024 to 2026 is projected to be 2.17 million, 2.55 million, and 2.86 million units, respectively, with a year-on-year growth of 29%, 17%, and 12% [1][5]. Financial Summary - Revenue Forecast: - 2023: HKD 179.2 billion - 2024E: HKD 237.3 billion (32.4% YoY growth) - 2025E: HKD 296.1 billion (24.8% YoY growth) - 2026E: HKD 340.6 billion (15.0% YoY growth) [1][6]. - Net Profit Forecast: - 2023: HKD 5.2 billion - 2024E: HKD 15.1 billion (191.3% YoY growth) - 2025E: HKD 11.8 billion (-21.4% YoY decline) - 2026E: HKD 15.1 billion (27.2% YoY growth) [1][6]. - Earnings Per Share (EPS): - 2024E: HKD 0.51 - 2025E: HKD 1.49 - 2026E: HKD 1.18 [1][6]. - Price-to-Earnings (P/E) Ratio: - 2024E: 8.9 - 2025E: 11.3 - 2026E: 8.9 [1][6]. - Price-to-Book (P/B) Ratio: - 2024E: 1.7 - 2025E: 1.4 - 2026E: 1.2 [1][6]. Market Positioning - Geely is positioned to benefit from its comprehensive resource layout in global operations, self-developed intelligent driving, and chip technology, which are expected to enhance its competitive edge in the electric vehicle market [1][5].