Huachuang Securities·2024-11-15 07:48Investment Rating - The report maintains a "Strong Buy" rating for Geely Automobile (00175.HK) with a target price range of HKD 21.9-24.8, compared to the current price of HKD 13.90 [1]. Core Views - The third quarter of 2024 showed impressive results with revenue of CNY 60.4 billion, a year-on-year increase of 20%, and a net profit attributable to shareholders of CNY 2.455 billion, up 92% year-on-year [1]. - The company is strategically integrating its resources, including increasing its stake in Zeekr to 62.8% and acquiring Lynk & Co shares to achieve a controlling interest [1]. - The performance of Geely's main brand exceeded expectations, with Q3 2024 sales of 530,000 units, a 19% year-on-year increase [1]. - The report anticipates rapid growth in sales and operational performance over the next two years, driven by the company's electric vehicle transformation and strategic resource integration [1]. Financial Summary - Revenue: - 2023A: CNY 179.204 billion - 2024E: CNY 242.975 billion (35.6% YoY growth) - 2025E: CNY 314.136 billion (29.3% YoY growth) - 2026E: CNY 378.165 billion (20.4% YoY growth) [2][6] - Net Profit: - 2023: CNY 5.308 billion - 2024E: CNY 16.011 billion (207.3% YoY growth) - 2025E: CNY 13.588 billion (-15.3% YoY growth) - 2026E: CNY 17.539 billion (29.4% YoY growth) [2][6] - Earnings Per Share (EPS): - 2024E: CNY 1.59 - 2025E: CNY 1.35 - 2026E: CNY 1.74 [2][6] - Price-to-Earnings Ratio (PE): - 2024E: 8.1 - 2025E: 9.5 - 2026E: 7.4 [2][6] Sales and Production Outlook - The report projects total sales of 2.15 million, 2.56 million, and 2.89 million units for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 28%, 19%, and 13% [1]. - The share of new energy vehicles is expected to increase to 40%, 54%, and 62% in the same years [1].