Investment Rating - The report maintains a "Buy" rating for Geely Automobile, with an updated target price of HK$21.88, corresponding to a 15x PE for 2025E [4][6]. Core Insights - Geely Automobile's total revenue for 2024 increased by 34.0% year-on-year to CNY 240.19 billion, with net profit attributable to shareholders rising by 213% to CNY 16.63 billion, aligning closely with expectations [1][4]. - The company experienced a strong performance in Q4 2024, with total revenue up 29.7% year-on-year and net profit up 45.4% year-on-year [1]. - Geely's total sales volume for 2024 rose by 32% to 2.177 million units, with new energy vehicle sales surging by 92% to 888,000 units [2]. Summary by Sections Financial Performance - In 2024, Geely's gross margin improved by 0.6 percentage points to 15.3%, with Q4 2024 gross margin reaching 17.3% [2]. - The SG&A expense ratio decreased by 1.4 percentage points to 7.6% [2]. - The report forecasts net profits of approximately CNY 13.91 billion for 2025E and CNY 16.06 billion for 2026E, with an upward revision from previous estimates [4][5]. Strategic Developments - The internal integration and smart transformation are accelerating, with the establishment of Geely Technology Group and the completion of the equity transfer of Lynk & Co to Zeekr [3]. - Geely plans to launch 10 new products and several facelifts in 2025, enhancing operational efficiency through resource synergy [3]. - The company aims to complete its "Smart Geely 2025" strategy, focusing on AI and data integration, which is expected to strengthen its competitive position in the mainstream price segment [3]. Market Position and Outlook - Geely's global strategy is progressing, with expectations for overseas sales to exceed 10% of total sales, supported by resources from Volvo and expanded KD factory layouts [3]. - The report highlights the potential for continued profit optimization driven by the launch of high-value models and internal cost reductions [4].

Core Viewpoint - The company demonstrated strong annual performance in 2024, with total revenue increasing by 34.0% year-on-year to 240.19 billion yuan and net profit attributable to shareholders rising by 213% to 16.63 billion yuan, aligning closely with expectations [2]. Group 1: Financial Performance - In Q4 2024, total revenue grew by 29.7% year-on-year and 20.1% quarter-on-quarter to 72.51 billion yuan, while net profit attributable to shareholders increased by 45.4% year-on-year and 45.8% quarter-on-quarter to 3.58 billion yuan [2]. - The net loss of the Zeekr brand in Q4 2024 narrowed by 69.2% quarter-on-quarter and 22.9% year-on-year to 0.91 billion yuan, with the annual net loss for Zeekr decreasing by 34.9% to 5.35 billion yuan [2]. Group 2: Operational Efficiency - The company achieved a total sales volume of 2.177 million vehicles in 2024, a year-on-year increase of 32%, with new energy vehicle sales surging by 92% to 0.888 million units [3]. - The gross margin improved by 0.6 percentage points year-on-year to 15.3%, with Q4 2024 gross margin rising by 1.0 percentage points year-on-year and 1.8 percentage points quarter-on-quarter to 17.3% [3]. - Selling, general and administrative (SG&A) expense ratio decreased by 1.4 percentage points year-on-year to 7.6% [3]. Group 3: Strategic Developments - The completion of the equity transfer of Lynk & Co to Zeekr on February 14, 2025, led to the establishment of Zeekr Technology Group, increasing the company's stake in Zeekr to 62.8% and in Lynk & Co to approximately 81% [4]. - The management plans to launch 10 new products and several updated models in 2025, indicating a focus on internal integration and efficiency improvements through resource collaboration [4]. - The company aims to accelerate its smart transformation by fully implementing its "Smart Geely 2025" strategy, which includes partnerships with Qianli Technology and Jiyue Star to build a comprehensive ecosystem [4]. - The global expansion strategy is progressing, with expectations for overseas sales to exceed 10% of total sales, supported by resources from Volvo and the expansion of KD factory layouts [4].