CSC SECURITIES (HK) LTD·2025-07-10 07:11Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [6][13]. Core Insights - The company has raised its annual sales target to 3 million vehicles, representing a year-on-year increase of 38% [7]. - In June, the company sold 236,000 vehicles, a year-on-year increase of 42.1%, contributing to a total of 1.41 million vehicles sold in the first half of the year, up 47.4% year-on-year [7]. - The launch of the Zeekr 9X, featuring advanced technologies, is expected to enhance the company's competitive position in the market [9]. Company Overview - The company operates in the automotive industry, with a market capitalization of HKD 135.24 billion and a share price of HKD 17.00 as of July 9, 2025 [2]. - Major shareholders include Holding Inc. with a 25.24% stake [2]. - The company's stock has seen a 12-month high of HKD 19.97 and a low of HKD 7.33 [2]. Sales Performance - The company achieved a significant increase in sales, with June sales reaching 236,000 units, and a total of 1.41 million units sold in the first half of the year [7]. - The sales of electric vehicles accounted for 52% of total sales in June, with the Geely brand leading the sales figures [7]. Financial Projections - The report projects net profits for 2025, 2026, and 2027 to be RMB 138.4 billion, RMB 179 billion, and RMB 223 billion respectively, with year-on-year growth rates of 47%, 30%, and 24% [9][11]. - Earnings per share (EPS) are expected to be RMB 1.37, RMB 1.78, and RMB 2.20 for the same years [9][11]. Product Development - The Zeekr 9X is set to be the brand's flagship hybrid model, featuring a 900V high-voltage architecture and advanced battery technology [9]. - The vehicle is expected to support rapid charging capabilities and has a maximum electric range of 380 kilometers [9].