Soochow Securities·2024-11-20 04:08Investment Rating - The report maintains a "Buy" rating for Geely Automobile [1] Core Views - The Q3 performance of Geely Automobile met market expectations, with a single-quarter revenue of 60.378 billion yuan, reflecting a quarter-on-quarter increase of 20.5% and a year-on-year increase of 9.8%. The net profit for the quarter was 2.455 billion yuan, with a year-on-year increase of 92.4% but a quarter-on-quarter decrease of 72.8% [2][3] - The report highlights the strategic synergy from the merger of brands, which is expected to enhance operational efficiency and reduce competition within the group [4] Financial Performance Summary - Total revenue for Geely in 2022 was 148.565 billion yuan, with projections of 179.846 billion yuan for 2023, 250.809 billion yuan for 2024, 316.050 billion yuan for 2025, and 344.520 billion yuan for 2026, indicating a year-on-year growth rate of 45.63% in 2022 and 39.46% in 2024 [1] - The net profit attributable to shareholders was 5.260 billion yuan in 2022, with forecasts of 5.308 billion yuan for 2023, 16.816 billion yuan for 2024, 13.575 billion yuan for 2025, and 15.988 billion yuan for 2026, showing a significant increase of 216.78% in 2024 [1][4] - The report notes that the earnings per share (EPS) is projected to rise from 0.52 yuan in 2022 to 1.67 yuan in 2024, with a price-to-earnings (P/E) ratio of 7.57 for 2024 [1][4] Sales and Profitability Metrics - In Q3, Geely achieved total sales of 534,000 units, with a year-on-year increase of 18.7% and a quarter-on-quarter increase of 11.3%. The average selling price per vehicle was approximately 130,000 yuan [3] - The gross margin for Q3 2024 was reported at 15.6%, with a slight year-on-year increase of 0.1 percentage points [3] - The report indicates that the net profit per vehicle for Geely brand vehicles was 0.55 thousand yuan, reflecting a year-on-year increase of 76% [3]