GEELY AUTO(HK:00175) Guoxin Securities·2025-05-22 15:20Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][27] Core Views - The company reported significant year-on-year growth in Q1 2025, with revenue reaching 72.495 billion yuan, a 25% increase, and net profit of 5.672 billion yuan, up 264% [1][8][11] - The company is advancing the privatization of its brand Zeekr, which is expected to enhance operational efficiency and reduce costs [3][22][24] - The company has adjusted its earnings forecasts upward for 2025-2027, anticipating revenues of 319.7 billion yuan, 396 billion yuan, and 437 billion yuan respectively, with net profits of 15.8 billion yuan, 20.7 billion yuan, and 24.4 billion yuan [4][28] Summary by Sections Financial Performance - In Q1 2025, the company achieved a gross margin of 15.8%, with a net profit margin of 7.82% and a core profit margin of 4.79% [1][14] - The total sales volume reached 704,000 units, a 48% increase year-on-year, with new energy vehicle sales at 339,000 units, representing a penetration rate of 52.2% [2][18] Product Development - The company launched the "Qianli Haohan" intelligent driving system and the self-developed "Shen Dun Jin Zuan" battery in Q1 2025, enhancing its AI capabilities and battery technology [2][19] Privatization and Mergers - The company announced a non-binding offer to privatize Zeekr at a price of $2.566 per share, which would make Zeekr a wholly-owned subsidiary [3][22] - The merger of Zeekr and Lynk & Co was completed in February 2025, indicating a strategic consolidation of brands under the company [3][22] Earnings Forecast - The company expects EPS of 1.57 yuan, 2.04 yuan, and 2.43 yuan for 2025, 2026, and 2027 respectively, maintaining the "Outperform the Market" rating [4][28]