GEELY AUTO(00175) 民生证券·2024-11-16 18:23Investment Rating - The report maintains a "Buy" rating for Geely Automobile [3][8]. Core Views - Geely's strategic focus on integrating its brands, particularly through increasing its stake in Zeekr and controlling Lynk & Co, is expected to enhance operational efficiency and resource utilization [5][8]. - The company's Q3 2024 revenue reached 60.38 billion yuan, a year-on-year increase of 20.5%, driven by significant sales growth and product optimization [4][5]. - Geely's net profit for Q3 2024 was 2.45 billion yuan, reflecting a substantial year-on-year growth of 92.1% [4][5]. Summary by Sections Company Overview - Geely Holdings announced a restructuring of its equity in Zeekr and Lynk & Co, increasing its stake in Zeekr to approximately 62.8% and establishing Zeekr as the controlling shareholder of Lynk & Co [4][5]. Financial Performance - Q3 2024 revenue was 60.38 billion yuan, up 20.5% year-on-year and 9.8% quarter-on-quarter, with total sales of 534,000 vehicles, a year-on-year increase of 18.7% [4][5]. - The gross profit margin for Q3 2024 was 15.6%, a slight increase of 0.1 percentage points year-on-year [4][5]. - The net profit attributable to shareholders for Q3 2024 was 2.45 billion yuan, with a significant year-on-year increase of 92.1% [4][5]. Strategic Initiatives - The restructuring aims to eliminate redundancies and improve decision-making efficiency within the group, aligning with Geely's strategic transformation goals [5][8]. - The report highlights the positive impact of the new energy vehicle segment, with sales of 226,000 units in Q3 2024, representing a year-on-year increase of 72.7% [4][5]. Future Outlook - The report projects revenue growth for 2024-2026, estimating revenues of 224.78 billion yuan, 277.69 billion yuan, and 308.83 billion yuan respectively, with net profits of 16.04 billion yuan, 12.58 billion yuan, and 16.32 billion yuan [8][9].