
Investment Rating - The report maintains a "Strong Buy" rating for Geely Automobile, expecting it to outperform the benchmark index by over 20% in the next six months [5][18]. Core Views - Geely Automobile has initiated a non-binding privatization offer for Zeekr at a premium of 13.6% over the last closing price, aiming to consolidate its high-end electric vehicle assets and enhance operational efficiency [2][8]. - The privatization is expected to significantly increase Geely's profits and long-term shareholder value, with projections indicating a 34.3% increase in net profit from the acquisition [8][9]. - The company is on track for a successful electric transformation starting in 2024, with further acceleration anticipated in 2025, supported by strategic brand integration [8][9]. Financial Summary - Revenue Projections: - 2024A: 240,194 million CNY - 2025E: 336,392 million CNY (34.03% YoY growth) - 2026E: 441,972 million CNY (40.05% YoY growth) - 2027E: 514,187 million CNY (31.39% YoY growth) [4][9] - Net Profit Projections: - 2024: 16,632 million CNY - 2025: 14,788 million CNY (-11.09% YoY) - 2026: 20,800 million CNY (40.66% YoY) - 2027: 25,699 million CNY (23.55% YoY) [4][9] - Earnings Per Share (EPS): - 2024: 1.65 CNY - 2025: 1.47 CNY - 2026: 2.06 CNY - 2027: 2.55 CNY [4][9] - Valuation Ratios: - Price-to-Earnings (P/E) ratio for 2025: 10.6x - Price-to-Book (P/B) ratio for 2025: 1.6x [4][9] Target Price - The target price range for Geely Automobile is set between 23.69 and 28.43 CNY, representing a potential upside of 42% to 70% from the current price of 16.78 CNY [5][8].