GEELY AUTO(00175)2025-06-04 14:23Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 26.0, indicating a potential upside of 47% based on the forecasted P/E ratio of 17.9 times for 2025 [1][4][7]. Core Insights - In May, the total sales of the company reached 235,000 units, representing a year-on-year increase of 46.4% and a month-on-month increase of 0.5%. Among these, the sales of new energy vehicles were 138,000 units, showing a significant year-on-year growth of 135.2% and a month-on-month growth of 9.9% [2][4]. - The company has launched new models that have quickly gained popularity in their respective segments. The Galaxy Starry 8 was launched at a price range of HKD 115,800 to HKD 155,800 and has become the best-selling B-class plug-in hybrid sedan within a week of its launch [3][4]. - The automotive price war may ease as industry associations and the Ministry of Industry and Information Technology express opposition to excessive price cuts, promoting fair competition in the market [4]. Sales Performance - In May, the company sold 235,000 vehicles, with 138,000 being new energy vehicles, marking a year-on-year increase of 46.4% and 135.2% respectively. Cumulative sales from January to May reached 1.173 million units, up 48.6% year-on-year, while new energy vehicle sales totaled 603,000 units, up 137.1% year-on-year [2][4][7]. New Product Launches - The Galaxy Starry 8 and Lynk & Co 900 have been launched, with the former achieving over 10,000 pre-orders within six days and the latter breaking 10,000 pre-orders within one hour of its launch. Both models are positioned to compete with established brands in their segments [3][4]. Market Dynamics - The report highlights that the automotive industry is experiencing a shift in pricing strategies, with major players like BYD initiating price cuts, prompting other manufacturers, including the company, to follow suit. Regulatory bodies are expected to intervene to maintain a balanced competitive environment [4].