GEELY AUTO(00175) 国证国际证券·2025-01-03 04:56Investment Rating - The report maintains a "Buy" rating for Geely Automobile with a target price of HKD 19.0, indicating a potential upside of 35% from the current price of HKD 14.1 [1][4][3]. Core Insights - Geely Automobile achieved a total sales volume of 2.177 million units in 2024, representing a year-on-year growth of 32%, exceeding its sales target [2][3]. - The report highlights the strong performance of Geely's brands, driven by new technologies and product upgrades, which are expected to continue fueling sales and revenue growth [1][3]. - The company aims for a sales target of 2.71 million units in 2025, with a focus on new energy vehicles (NEVs) and a projected NEV sales volume of 1.5 million units, reflecting a growth of 69% [3][2]. Sales Performance - In December 2024, Geely's total sales reached 210,000 units, a year-on-year increase of 43%, with the Geely brand alone selling 157,000 units, up 46% year-on-year [2]. - The cumulative sales for the Geely brand in 2024 were 1.669 million units, a 27.4% increase, while Zeekr and Lynk & Co brands saw significant growth of 87.2% and 29.6% respectively [2][3]. Financial Projections - The report projects Geely's revenue to grow from RMB 179.2 billion in FY2023 to RMB 239.3 billion in FY2024, marking a growth rate of 34% [7]. - Net profit is expected to increase significantly to RMB 15.8 billion in FY2024, reflecting a growth rate of 197% compared to the previous year [7]. - The gross margin is projected to improve gradually, reaching 16.5% by FY2026 [7]. Product Strategy - Geely plans to launch five new energy products in 2025, including two SUVs and three sedans, with a new hybrid technology to enhance competitiveness [3]. - The Zeekr brand will focus on increasing its smart technology offerings, planning to release three new models in 2025 [3]. - Lynk & Co aims to upgrade its existing products and introduce two new hybrid models in the second and third quarters of 2025 [3].