2024-03-21 16:00Investment Rating - The investment rating for Geely Automobile is "Buy" [5] Core Insights - Geely Automobile achieved a significant revenue growth of 21.1% year-on-year in 2023, reaching 179.2 billion RMB, with a gross profit of 27.42 billion RMB, up 31.2% [2] - The company’s automobile sales reached 1.6865 million units in 2023, marking a 17.7% increase year-on-year, driven by a strong performance in new energy vehicles [2] - In early 2024, Geely's sales continued to rise, with January and February sales hitting historical highs, totaling 325,000 units, a 55% increase year-on-year [3] - The company plans to launch nearly 10 new energy models across its brands in 2024, aiming for a total sales target of 1.9 million units, with new energy vehicle sales expected to grow by 66% [4][8] Summary by Sections Financial Performance - In 2023, Geely's gross margin improved to 15.3%, an increase of 1.2 percentage points from the previous year, attributed to product mix improvement and cost reductions [2] - The net profit attributable to shareholders was 5.31 billion RMB, a slight increase of 0.9% year-on-year, impacted by increased distribution and sales expenses [2][8] - For 2024, revenue is projected to exceed 200 billion RMB, with a net profit forecast of around 7 billion RMB, reflecting a 35% growth [8] Sales and Market Position - The company’s new energy vehicle sales surged by 189% in the first two months of 2024, with a penetration rate of 30.6% [3] - Geely's product lineup is expected to remain competitive, with multiple new models set to launch, enhancing its market position [4][9] Valuation - As of March 20, 2024, Geely's stock price was 8.83 HKD, corresponding to a PE ratio of approximately 11.4 times, indicating a relatively low valuation [9] - The report suggests that the stock presents a favorable medium to long-term investment opportunity due to its current low valuation and strong growth prospects [9]