GEELY AUTO(HK:00175) Changjiang Securities·2024-12-12 00:54Investment Rating - The investment rating for Geely Automobile is "Buy" and is maintained [9]. Core Views - The launch of the Galaxy Starship 7 EM-i on December 6, 2024, is based on the new GEA architecture, featuring the next-generation Thunder EM hybrid technology, achieving a comprehensive range of 1420 km and a fuel consumption of 3.75 L per 100 km in electric mode. The vehicle is priced between 99,800 to 132,800 CNY, with immediate delivery upon launch. This pricing is lower than expected, indicating potential for Geely to create a popular hybrid model [2][6][8]. - The new platform is expected to usher in a new era for Geely, with positive developments across its brands, including Zeekr, Lynk & Co, and Galaxy. The company is well-positioned for a new vehicle cycle, with a solid foundation in fuel vehicles and innovative overseas expansion strategies [8]. Summary by Sections Event Description - The Galaxy Starship 7 EM-i, an A-class plug-in hybrid SUV, was officially launched on December 6, 2024. It features the new Thunder EM hybrid technology, offering a comprehensive range of 1420 km and a fuel consumption of 3.75 L per 100 km. The vehicle is available in five versions, with a promotional price of 99,800 to 132,800 CNY, and is ready for immediate delivery [6][8]. Event Commentary - The pricing of the Galaxy Starship 7 has exceeded expectations, being 10,000 CNY lower than the pre-sale price. The official price ranges from 103,800 to 136,800 CNY, which is 6,000 CNY lower than the pre-sale price. Customers who place a deposit before January 31, 2025, can enjoy an additional discount of 4,000 CNY. The vehicle competes directly with BYD's models, with the Starship 7's promotional price being 16,000 CNY lower than the comparable BYD Song Pro model. The market response to the Starship 7 is comparable to the E5's launch, indicating strong product appeal and pricing strategy [6][8]. Product Features - The Galaxy Starship 7 EM-i is built on the GEA architecture, featuring a spacious design with a wheelbase of 2755 mm and a high space utilization rate of 84.3%. It incorporates advanced technology, including an 11-in-1 hybrid electric drive system and an AI energy management system. The vehicle offers two pure electric range options of 55 km and 120 km, with a maximum comprehensive range of 1420 km [7][8]. Financial Outlook - Geely's financial outlook remains positive, with expected net profits of 16 billion, 11.8 billion, and 15.7 billion CNY for 2024, 2025, and 2026, respectively. The corresponding P/E ratios are projected to be 8.5X, 11.7X, and 8.7X, indicating a favorable valuation position [8].