GEELY AUTO(00175) 长江证券·2024-03-31 16:00Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company achieved a revenue of 179.2 billion yuan in 2023, representing a year-on-year growth of 21.1%, and a net profit attributable to shareholders of 5.31 billion yuan, which is a 0.9% increase year-on-year [2][5]. - In the second half of 2023, the company reported a revenue of 106.02 billion yuan, up 18.1% year-on-year, and a net profit of 3.74 billion yuan, reflecting a growth of 0.8% [2][5]. - The revenue growth is driven by product upgrades, economies of scale, and cost reductions, leading to an improved gross margin [5][6]. - The company is expected to see strong profit elasticity as the scale effect of new energy vehicles becomes more apparent in 2024 [6]. Summary by Sections Revenue Performance - The company reported a total revenue of 179.2 billion yuan in 2023, with automotive sales-related revenue at 149.62 billion yuan, marking a 21.9% increase year-on-year [5]. - The total vehicle sales reached 1.687 million units, a 17.7% increase year-on-year, resulting in a per vehicle revenue of 104,800 yuan, which is a 2.1% increase [5]. Profitability - The net profit attributable to shareholders was 5.31 billion yuan, which is a 51% increase compared to the previous year after excluding one-time gains [5]. - The gross margin improved to 15.3% in 2023, up 1.2 percentage points year-on-year, with the second half of the year showing a gross margin of 15.9%, an increase of 2.1 percentage points [5]. New Energy Transition - The company is entering a new cycle of intelligent electric vehicles, with significant upgrades in its hybrid and electric vehicle technologies [6]. - The launch of new models in 2024 is expected to accelerate the transition to new energy vehicles, with a total of 9 new models planned across its brands [6]. - The projected net profits for 2024, 2025, and 2026 are 7.1 billion, 10.1 billion, and 12.1 billion yuan respectively, with corresponding PE ratios of 12X, 8X, and 7X [6].