Core Viewpoint - Chery Automobile has recently integrated its subsidiaries Lion Technology and Dazhuo Intelligence with the R&D headquarters to establish the "Chery Intelligent Center," marking a significant step in its smart strategy [1] Group 1: Company Developments - The newly formed Chery Intelligent Center will have a complete operational advantage and will include R&D and innovation modules such as intelligent cockpit, intelligent driving assistance, and digital architecture [1] - The integration aims to create a full-link closed loop encompassing hardware, algorithms, data, software, ecology, and scenarios [1] Group 2: Strategic Importance - According to Chery Group spokesperson Jin Yibo, this integration is a crucial move in advancing Chery's smart strategy [1]

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Views - The company has launched a restricted stock incentive plan for 2025, aiming to grant approximately 14.18 million shares to 421 individuals, which is about 1.65% of the total share capital, at a price of 20.6 yuan per share. This plan is expected to motivate the core team and stimulate growth [1] - The incentive plan sets performance targets for revenue and net profit growth from 2024 as a base, requiring growth rates of at least 15%/32.25%/52.09% for the years 2025-2027, indicating a strong emphasis on sustained growth [2] - The company is focusing on product upgrades and has partnered with ByteDance and Midea to enhance its smart strategy, aiming for a transformation towards full-chain intelligence and user operation [3] - The company anticipates steady sales growth in Q2 2025, with supply chain issues previously encountered now resolved, and aims to leverage its strengths to increase market share [3] Financial Summary - The projected total revenue for the company is expected to grow from 21.036 billion yuan in 2023 to 34.158 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 8.3% [6] - The net profit attributable to the parent company is forecasted to increase from 1.881 billion yuan in 2023 to 3.348 billion yuan in 2027, reflecting a CAGR of about 12.7% [6] - The company's gross margin is expected to improve from 16.5% in 2023 to 18.6% in 2027, indicating enhanced profitability [6] - The projected earnings per share (EPS) are expected to rise from 2.18 yuan in 2023 to 3.89 yuan in 2027, with corresponding price-to-earnings (P/E) ratios decreasing from 17.67 to 9.93 over the same period [4][6]

Core Viewpoint - Geely Automobile reported strong Q1 2025 performance with significant year-on-year growth in revenue and net profit, driven by a robust new vehicle cycle and increased sales of its Galaxy series electric vehicles [1][2][4] Financial Performance - Q1 2025 revenue reached 72.5 billion yuan, up 24.5% year-on-year and flat quarter-on-quarter [1] - Total sales for Q1 2025 were 704,000 vehicles, representing a 47.9% increase year-on-year and a 2.5% increase quarter-on-quarter, marking a historical quarterly high [1] - The net profit attributable to shareholders was 5.67 billion yuan, a remarkable increase of 263.6% year-on-year and 58.5% quarter-on-quarter [2] Product and Sales Insights - Geely's new energy vehicle sales (including Geely, Lynk & Co, and Zeekr) reached 339,000 units in Q1, a 135.4% increase year-on-year, with Galaxy series sales at 260,000 units, up 24.8% quarter-on-quarter [1][3] - The average revenue per vehicle was 103,000 yuan, down 15.8% year-on-year and 2.4% quarter-on-quarter, primarily due to changes in product mix from the large-scale delivery of Galaxy models [1] Profitability and Cost Management - Gross margin for Q1 2025 was 15.8%, an increase of 0.2 percentage points year-on-year [3] - Sales expense ratio was 5.0%, down 2.1 percentage points year-on-year, while management expense ratio was 6.5%, down 0.5 percentage points year-on-year [3] Strategic Initiatives - Geely plans to launch 10 new energy models in 2025, with five new models and several facelifts expected from the Geely brand [3] - The company is focusing on smart technology integration, with new models set to feature advanced driving assistance systems and the latest Nvidia chips [3][4] Market Outlook - The new platform (GEA architecture) is expected to support a new product cycle, enhancing profitability and market competitiveness [4] - The company anticipates a net profit of 16.1 billion yuan for 2025, with a corresponding PE ratio of 11.6X, maintaining a "buy" rating [4]

Investment Rating - The investment rating for Geely Automobile is "Buy" and is maintained [8] Core Views - Geely Automobile's Q1 2025 performance shows accelerated profitability from its transition to new energy, with results meeting expectations [2][5] - The company achieved a revenue of 72.5 billion yuan in Q1 2025, representing a year-on-year increase of 24.5% and a quarter-on-quarter stability [2][5] - Total sales reached 704,000 vehicles, up 47.9% year-on-year and 2.5% quarter-on-quarter, marking a historical high for a single quarter [2][5] - The net profit attributable to shareholders was 5.67 billion yuan, a significant increase of 263.6% year-on-year and 58.5% quarter-on-quarter [2][5] Summary by Sections Financial Performance - In Q1 2025, Geely's revenue was 72.5 billion yuan, with a year-on-year growth of 24.5% and a stable quarter-on-quarter performance [2][5] - The total vehicle sales were 704,000 units, reflecting a year-on-year increase of 47.9% and a quarter-on-quarter increase of 2.5% [2][5] - The net profit attributable to shareholders reached 5.67 billion yuan, showing a year-on-year growth of 263.6% and a quarter-on-quarter growth of 58.5% [2][5] Product Strategy - Geely is entering a new product era supported by the GEA architecture, with brands like Zeekr, Lynk & Co, and Galaxy performing well [2][5] - The company is successfully advancing its new energy transition, with scale effects gradually enhancing profitability [2][5] - In 2025, Geely plans to launch 10 new energy models, including 5 new models and several updated versions under the Geely brand [2][5] Market Position - Geely's solid foundation in fuel vehicles and innovative overseas expansion strategies are opening new markets [2][5] - The company's intelligent driving strategy is being accelerated, enhancing its driving capabilities [2][5] - The strong new vehicle cycle is expected to provide significant profitability elasticity [2][5]

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported Q1 2025 results with revenue of 72.5 billion, a year-on-year increase of 24.5%, and a net profit of 5.67 billion, up 263.6% year-on-year, indicating strong performance in its transition to new energy vehicles [3][7]. - The new platform is enabling the company to enter a new product era, with significant improvements in sales and profitability driven by the successful transition to new energy vehicles [7]. - The company is expected to launch 10 new energy models in 2025, enhancing its product lineup and driving further growth [7]. Summary by Sections Financial Performance - In Q1 2025, the company achieved revenue of 72.5 billion, with total sales of 704,000 vehicles, a year-on-year increase of 47.9% [3][7]. - The net profit for Q1 2025 was 5.67 billion, reflecting a significant year-on-year increase of 263.6% [3][7]. - The gross margin for Q1 2025 was 15.8%, showing a slight year-on-year improvement [7]. Product Strategy - The company is focusing on electric and intelligent vehicle strategies, with a strong new car cycle expected to continue [7]. - The GEA architecture supports the new vehicle cycle, with brands like Geely, Lynk & Co, and Zeekr performing well [7]. Market Outlook - The company is expected to maintain a solid foundation in fuel vehicles while exploring new overseas markets through innovative partnerships [7]. - The projected net profit for 2025 is estimated at 16.1 billion, with a corresponding PE ratio of 11.6X, indicating a positive outlook for profitability [7].

Summary of the Conference Call on the Two-Wheeled Vehicle Industry Industry Overview - The two-wheeled vehicle industry is experiencing significant growth, with an overall market growth rate of approximately 30% in May 2025. Specific companies are seeing varied growth rates due to factors such as channel expansion and new product launches [2][3]. Company Performance Yadea - In Q1 2025, Yadea's sales were approximately 4.006 to 4.007 million units, with April sales around 1.388 million units [2][3]. - Yadea's average selling price (ASP) for 2024 is expected to be around 2,200 RMB, with a projected increase of 3% to 5% in 2025 [10][11]. - Yadea's inventory levels are normal, approximately 1.5 to 1.6 months [7]. Aima - Aima's total sales for 2024 are projected to exceed 10.9 million units, with approximately 10.29 million units being two-wheeled vehicles. Quarterly sales are estimated at 2.5 million, 3.1 million, 3.4 million, and 1.8 million units respectively [5]. - Aima is facing structural shortages in inventory, particularly in first and second-tier cities, with inventory levels around 1.2 to 1.3 months [8]. - Aima's ASP for 2024 is expected to be around 2,100 RMB, with a similar increase projected for 2025 [10]. Tailg - Tailg's total sales for 2024 are estimated to be between 7.2 million and 7.3 million units, with quarterly sales of approximately 1.8 million, slightly over 2 million, 2.4 to 2.5 million, and 0.7 to 0.8 million units respectively [6]. - Tailg's sales for 2023 were between 7.8 million and 8 million units [6]. Ninebot - Ninebot's sales in April 2025 were approximately 480,000 to 490,000 units, showing a year-on-year growth of nearly 80% [3]. - Ninebot's ASP for 2024 is projected to be between 2,900 and 3,000 RMB, with a slight increase expected in 2025 [12]. Market Dynamics - The market for products priced above 4,000 RMB is expanding, with approximately 4.5 million units sold in 2024. Ninebot leads this segment with 1.8 to 1.9 million units sold [18]. - The industry is shifting towards higher-end models, driven by subsidies for trade-ins and the introduction of new products [18]. Pricing Strategies - Yadea is adjusting its product pricing strategy, focusing on the 3,300 to 3,600 RMB range while reducing the proportion of models priced below 2,500 RMB [14][15]. - The average selling price for high-end models is expected to be between 3,500 and 3,900 RMB [14]. Inventory and Supply Chain - Yadea's inventory is reported to be at a normal level, while Aima is experiencing structural shortages due to production capacity issues [7][8]. - Ninebot maintains a moderate inventory level, relying on normal retail sales and import/export volumes [9]. R&D and Innovation - Yadea is focusing on integrating smart features into its mid-to-high-end products but has not reached the level of smart development seen in competitors like Ninebot [21]. - The company has established a structured product development cycle of 10 to 12 months for new products and 6 to 8 months for iterations [22][23]. Financial Metrics - Ninebot has a higher average gross margin of 25-26%, while Yadea and Aima have an average gross margin of around 18% [33]. - The gross margin for electric motorcycles varies by model, with high-end models achieving margins over 22% [34]. After-Sales Service - Yadea has approximately 800 to 900 dedicated after-sales service centers, with plans to exceed 1,000 centers this year [42]. - Aima operates 500 to 600 after-sales service centers, while Ninebot has around 150 to 180 [42]. Conclusion - The two-wheeled vehicle industry is poised for growth, with key players adjusting strategies to meet market demands and enhance profitability. The focus on higher-end products and smart features is expected to drive future sales and market share.

Investment Rating - The investment rating for Geely Automobile is "Buy" and is maintained [7]. Core Views - Geely Automobile announced plans to acquire all issued shares of Zeekr at a suggested purchase price of $2.57 per share or $25.66 per American depositary share, aiming for complete integration of Zeekr as a wholly-owned subsidiary [2][5]. - The integration of Zeekr is seen as a positive long-term development for Geely, enhancing brand positioning and internal resource integration, which is expected to lower costs and improve competitiveness [9]. - The company is entering a new product era supported by the GEA architecture, with a strong new vehicle cycle and successful transitions to new energy across its brands [9]. Summary by Sections Acquisition Details - On May 7, 2025, Geely announced its plan to acquire all shares of Zeekr, currently holding approximately 65.7% of the shares [2][5]. - The proposed purchase price represents a premium of about 13.6% over the last trading day’s closing price and a 20% premium over the weighted average price of the last 30 trading days [9]. Financial Performance - Zeekr is expected to contribute positively to Geely's profitability, with Zeekr achieving a quarterly profit of 150 million yuan in Q4 2024 [9]. - Geely's net profit for 2025 is projected to be 16.1 billion yuan, with a corresponding PE ratio of 9.8X [9]. Product Strategy - Geely plans to launch 10 new energy models in 2025, including five new models and several facelifts under the Geely brand [9]. - The company is also focusing on enhancing its smart driving capabilities across its product lines, with significant advancements expected in the upcoming models [9].

Group 1 - The Shanghai International Automobile Industry Exhibition showcased Dongfeng Motor Corporation's theme "Intelligent New Dongfeng," marking the first joint exhibition of all its six independent brands [1] - Dongfeng officially launched the "Tianyuan Intelligent" technology brand, establishing a comprehensive intelligent technology system based on "one core, dual foundation, dual origin" [5][6] - The Tianyuan architecture serves as a central intelligence platform, integrating four major domains: power, body, cabin, and intelligent driving, while the Tianyuan OS is developed in collaboration with industry partners to promote ecosystem co-construction [6] Group 2 - Dongfeng's international expansion is accelerating, highlighted by a strategic cooperation agreement with Saudi Universal Motors Agencies to establish Saudi Arabia as a core strategic hub in the Middle East [7] - In Q1 of this year, Dongfeng's exports of self-owned passenger vehicles increased by 63% year-on-year, with a remarkable 138% surge in electric vehicle exports [7] - The company aims to transition from "market-driven technology" to "technology-driven standards," as stated by Dongfeng's chairman, emphasizing its commitment to leading the Chinese automotive industry [7]

Investment Rating - The investment rating for Geely Automobile is "Buy" and is maintained [6]. Core Views - Geely Automobile's Q1 2025 performance is expected to exceed expectations, driven by strong sales in the new energy vehicle segment, with projected net profit before accounting policy changes estimated at 11.6-12.3 billion yuan, representing a year-on-year increase of 640%-690% [2][4]. - The company is entering a new product era supported by the GEA architecture, with positive developments across its brands including Zeekr, Lynk & Co, and Galaxy [2][8]. - The transition to new energy is progressing smoothly, with scale effects expected to enhance profitability, while the solid foundation of fuel vehicles and innovative overseas expansion strategies are opening new markets [8]. Summary by Sections Financial Performance - In Q1 2025, Geely is expected to achieve sales of 704,000 vehicles, a year-on-year increase of 47.9% and a quarter-on-quarter increase of 2.5%, marking a historical quarterly high [8]. - The projected net profit after accounting policy changes is estimated at 5.2-5.8 billion yuan, reflecting a year-on-year increase of 220%-270% [4][8]. - The single vehicle profit is expected to be between 0.74-0.82 million yuan, showing significant improvement [8]. Product Strategy - Geely plans to launch 10 new energy models in 2025, with various new and updated models across its brands [8]. - The company is focusing on both electrification and intelligence, with a significant increase in the adoption of intelligent driving capabilities [8]. Market Position - The new energy transition is accelerating profitability, with structural optimization and scale effects further enhancing profit margins [8]. - Geely's strong new vehicle cycle is expected to provide substantial profit elasticity, with a projected net profit of 16.1 billion yuan for 2025, corresponding to a PE ratio of 8.7X [8].

Investment Rating - The investment rating for Geely Automobile is "Buy" [1] Core Views - Geely Automobile's Q1 2025 performance exceeded expectations, with a significant increase in profits driven by a strong new energy vehicle (NEV) sales momentum and an upcoming product cycle [2][3][4] - The company is expected to launch 10 new NEV models in 2025, aiming for a total NEV sales target of 1.5 million units [3] - The merger of Zeekr and Lynk & Co is anticipated to enhance Geely's competitiveness in the mid-to-high-end vehicle market through a focus on smart technology [4][5] - Geely is transitioning into a smart technology company, with a robust technological ecosystem supported by its advanced driving solutions and computing power [5] Financial Summary - The company forecasts a Q1 2025 net profit of RMB 5.2-5.8 billion, representing a year-on-year growth of 220-270% [2] - Revenue projections for 2025-2027 are set at RMB 317.96 billion, RMB 392.94 billion, and RMB 468.08 billion, respectively, with net profits of RMB 14.04 billion, RMB 17.92 billion, and RMB 23.04 billion [7][9] - The expected earnings per share (EPS) for 2025-2027 are RMB 1.39, RMB 1.78, and RMB 2.29, respectively [7][9] - The price-to-earnings (PE) ratios for 2025-2027 are projected to be 9.90, 7.76, and 6.03 times [7][9]