GEELY AUTO(00175) 天风证券·2025-03-11 00:26Investment Rating - The report assigns a "Buy" rating for Geely Automobile with a target price of 26.94 HKD, based on a current price of 17.16 HKD [6]. Core Viewpoints - Geely Automobile is undergoing a transformation from traditional manufacturing to intelligent electric technology, aiming to become a leading global smart technology car manufacturer [1][13]. - The company has integrated various brands through acquisitions, enhancing its research, production, supply chain, and brand influence [1]. - Geely's dual focus on fuel and new energy vehicles allows it to cover a wide price range from 50,000 to 800,000 RMB, catering to diverse market demands [1][15]. Summary by Sections 1. Business Overview - Geely has diversified its business into multiple sectors, with automotive manufacturing as its core, covering fuel and new energy vehicles [15]. - The company has developed modular architectures like CMA, SEA, and SPA Evo to enhance production efficiency and product stability [1][21]. 2. New Energy Business - Geely is creating a differentiated product matrix to meet diverse market needs, with brands like Zeekr and Lynk & Co focusing on high-end markets [3][2]. - The integration of Zeekr and Lynk & Co is expected to enhance profitability through synergies [2][3]. 3. Overseas Business - Geely is accelerating its global expansion through partnerships, such as with Volvo to create a global powertrain leader and collaborations with Proton and Renault Korea [4][3]. 4. Fuel Vehicle Business - Despite a declining domestic market, Geely's fuel vehicle sales have grown, supported by strong models like Boyue and Xingyue [5][47]. - The company plans to adjust its global fuel vehicle strategy to control costs in Europe while expanding into emerging markets [5]. 5. Financial Performance - Geely's revenue reached 179.85 billion RMB in 2023, with a year-on-year growth of 21.06%, and a projected net profit of 10.6 billion RMB for the first half of 2024 [6][45]. - The company expects to achieve net profits of 16.24 billion, 12.74 billion, and 15.96 billion RMB from 2024 to 2026, with a PE ratio of 20 times in 2025 [6][46]. 6. Future Planning - Geely has clear brand positioning to avoid internal competition, with specific targets for sales growth across its various brands [51]. - The company aims to sell 2.71 million vehicles in 2025, a 25% increase from 2024, with ambitious targets for new energy vehicle sales [52][53].