GEELY AUTO(00175) 国海证券·2024-06-01 01:31Investment Rating - The report maintains a "Buy" rating for Geely Automobile (00175) [2] Core Views - Geely's high-end pure electric brand Zeekr successfully listed on the NYSE, raising 5.199 billion [6] - Zeekr has a clear positioning in the high-end pure electric vehicle market, with a concentrated equity structure and a high proportion of R&D personnel [6] - Zeekr's main business focuses on high-end pure electric vehicle sales, with core components such as batteries and motors, and has established diversified cooperation with global strategic partners [6] - Zeekr has strong competitiveness in the high-end pure electric vehicle market and is expanding into Europe and other overseas markets [6] - Zeekr's revenue is expected to continue growing, with a gross margin of 13.3% in 2023, despite a net loss of 8.35 billion yuan [6] IPO Details - Zeekr listed on the NYSE on May 10, 2024, issuing 210 million ordinary shares, raising 5.199 billion [9] - 45% of the raised funds will be used for R&D of advanced pure electric vehicle technology and expanding the product portfolio, 45% for sales, marketing, and expanding service and charging networks, and 10% for general corporate purposes [9] - On the first day of listing, Zeekr's stock price opened at 28.26, a 34.57% increase, with a total market capitalization of $6.997 billion [9] Business Overview - Zeekr has launched 6 models as of May 2024, covering a price range of 189,800 to 789,000 yuan, including sedans, SUVs, and MPVs [22] - Zeekr's product matrix includes the ZEEKR 001, 001FR, 007, 009, 009 Glory Edition, and X, catering to various needs such as family comfort and business reception [22] - Zeekr has developed its own intelligent electric core technologies, including the SEA architecture, ZEEA 2.0 E/E architecture, DCU control architecture, and ZEEKR OS operating system [25] - Zeekr provides three charging solutions: home charging, road charging, and mobile charging services, with 7,500 customers having installed home charging solutions by the end of 2023 [29] Market Position and Expansion - Zeekr has a strong position in the high-end pure electric vehicle market in China, with the ZEEKR 001 achieving 75,928 deliveries in 2023, ranking first in the high-end EV market [46] - Zeekr is accelerating its entry into European and other overseas markets, with over 4,000 vehicles sold overseas in 2023, and plans to expand to 8 European countries in 2024 [6] - By 2026, Zeekr aims to enter most Western European regions and expand into emerging markets such as Southeast Asia, the Middle East, and South America, with sales operations in 50 countries [6] Financial Performance and Forecast - Zeekr's revenue in 2023 was 51.7 billion yuan, with a gross margin of 13.3%, but a net loss of 8.35 billion yuan [6] - Zeekr's revenue per vehicle in 2023 was 435,000 yuan, leading the industry [6] - Zeekr's sales are expected to reach 210,000, 308,000, and 365,000 vehicles in 2024, 2025, and 2026, respectively, with corresponding revenues of 52.5 billion, 77 billion, and 91.25 billion yuan [63] - Geely Automobile is expected to achieve revenues of 202.4 billion, 237.7 billion, and 260.4 billion yuan in 2024, 2025, and 2026, with net profits of 7.68 billion, 11.4 billion, and 15.11 billion yuan, respectively [66] Valuation and Peer Comparison - Zeekr's valuation is relatively low compared to its peers, with a PS ratio of 0.89, compared to 5.82 for NIO and 2.09 for XPeng [61] - Geely Automobile's PE ratios for 2024, 2025, and 2026 are 12.4x, 8.4x, and 6.3x, respectively, maintaining a "Buy" rating [66]