Minsheng Securities·2025-02-04 03:20Investment Rating - The report maintains a "Recommended" rating for the company [4] Core Views - The company achieved a strong start in January 2025 with total wholesale sales of 267,000 vehicles, representing a year-on-year increase of 24.9% and a month-on-month increase of 27.0%. The new energy vehicle sales reached 121,071 units, up 83.9% year-on-year and 8.9% month-on-month, with a penetration rate of 45.4% [1][2] - The company aims for a total sales target of 2.71 million vehicles in 2025, which is expected to grow approximately 25% year-on-year. This includes 2 million units from the Geely brand, 320,000 units from the Zeekr brand, and 390,000 units from the Lynk & Co brand. The new energy vehicle sales target is set at 1.5 million units, anticipated to grow about 69% year-on-year [2] - The company is enhancing its new energy vehicle offerings with the GEA architecture, launching the first plug-in hybrid model, the Starship 7, which has seen significant early sales. The company is expected to enter a profitable cycle in its new energy business [2][3] - The company has increased its stake in Zeekr and gained control over Lynk & Co, which is expected to improve internal resource integration and operational efficiency [3] Financial Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 224.8 billion, 289.7 billion, and 338.8 billion RMB respectively, with net profits of 16.4 billion, 14.1 billion, and 17.4 billion RMB respectively. The EPS is projected to be 1.63, 1.40, and 1.73 RMB for the same years [4][5] - The company’s financial ratios indicate a P/E ratio of 8 for 2025, suggesting a favorable valuation compared to its earnings growth [4][5]