Minsheng Securities·2025-05-05 04:17Investment Rating - The report maintains a "Buy" rating for Geely Automobile (0175.HK) with a current price of HKD 16.68 [1] Core Views - Geely's performance in the new energy sector continues to shine, with significant growth in sales and a strong product pipeline, particularly with the launch of new models from Zeekr and Lynk & Co [2][3] - The company is expected to see accelerated profitability driven by new energy vehicles, with projected revenues and net profits increasing significantly over the next few years [5][6] Sales Performance - In April, Geely's total wholesale sales reached 234,000 units, a year-on-year increase of 52.7% and a month-on-month increase of 0.8% [2][3] - Cumulatively, from January to April, total wholesale sales were 938,000 units, up 49.1% year-on-year, with new energy vehicle sales reaching 465,000 units, a year-on-year increase of 137.7% [2][3] Product Launches - The launch of the Geely Galaxy E8 and the Lynk & Co 900 is expected to enhance the company's market position, with the Galaxy brand aiming for over 1 million units in annual sales [3][4] - The Zeekr brand is also set to introduce new high-end models, including the Zeekr 9X, which is anticipated to capture a significant share of the luxury SUV market [4] Financial Projections - Revenue projections for Geely are set at RMB 364.78 billion for 2025, RMB 439.69 billion for 2026, and RMB 512.83 billion for 2027, with net profits expected to reach RMB 140.2 billion, RMB 177.8 billion, and RMB 203.8 billion respectively [5][6] - The earnings per share (EPS) are forecasted to be RMB 1.39 for 2025, RMB 1.76 for 2026, and RMB 2.02 for 2027, indicating a strong growth trajectory [6] Strategic Initiatives - Geely is deepening its integration of AI technologies, which is expected to enhance product sales and reshape its valuation in the market [5] - The company has announced a comprehensive AI strategy that includes advanced driving systems and digital platforms, aiming to improve overall vehicle performance and customer experience [5]