GUOTAI HAITONG SECURITIES·2026-03-03 09:20Investment Rating - The investment rating for Geely Automobile is "Buy" [1] Core Views - The report anticipates that Geely Automobile will exceed its sales target of 3.45 million units for 2026, with significant improvements in profitability driven by high-end vehicles and exports [2] - The "Smart Geely 2025" strategy is expected to enhance the company's global competitiveness, leading to higher achievements [9] Sales Performance - In February 2026, Geely's sales reached 206,000 units, a year-on-year increase of 1%. New energy vehicle sales accounted for 117,000 units, with pure electric vehicles at 68,000 units (down 6%) and plug-in hybrids at 50,000 units (up 89%) [9] - For January-February 2026, total sales were 476,000 units, also a 1% year-on-year increase, with new energy vehicle sales at 242,000 units [9] Financial Summary - Total revenue projections for 2026 are RMB 471.165 billion, with a year-on-year growth of 34.5% [8] - Net profit for 2026 is estimated at RMB 23.18 billion, reflecting a growth of 35.5% [8] - The report projects earnings per share (EPS) for 2026 to be RMB 2.14, with a price-to-earnings (PE) ratio of 15 times, leading to a target price of HKD 36.61 [9] Sales Targets - The sales target for 2026 is set at 3.45 million units, representing a 14% increase from 2025, with new energy vehicle sales targeted at 2.22 million units, a 32% increase from the previous year [9]