Summary of Geely Automobile Holdings Conference Call Company Overview - **Company**: Geely Automobile Holdings - **Industry**: China Autos & Shared Mobility - **Stock Rating**: Overweight - **Current Price**: HK$17.00 (as of November 18, 2025) - **Price Target**: HK$24.00, representing a 41% upside potential Key Points Financial Performance and Projections - Geely aims for a **30% unit profit growth** in 2026, supported by a favorable overseas sales mix, scale benefits, and cost savings following the privatization of ZEEKR [1][2] - The company targets a **20% market share growth** in China by 2026, compared to approximately **9% year-to-date in 2025** [1] - Geely anticipates **50-80% growth in overseas sales** in 2026, with **300,000 units of NEV exports** expected, up from **110,000 in 2025** [1] Gross Profit Margin (GPM) Insights - Management expects **GPM expansion in Q4 2025** after a decline in Q3 due to product transitions and higher discounts from inventory destocking [3] - Lynk & Co's GPM is projected to return to **15-16%** in Q4, up from **11% in Q3 2025** [3] - ZEEKR's GPM is expected to improve with a higher sales mix of models 009 and 9X [3] Operational Efficiency - Geely has reduced its payable cycle by **24 days to 87 days** in Q3 2025, with most suppliers now on a **60-day payment cycle** and small-to-mid suppliers on a **30-day cycle** [4] - The management indicated that the impact on operating cash flow (OCF) from this change is manageable [4] Market Capitalization and Valuation Metrics - Current market capitalization stands at **Rmb156,470 million** [7] - Projected revenue for 2026 is **Rmb383,001 million**, with an EBITDA of **Rmb28,816 million** [7] - The company’s P/E ratio is projected to decrease from **8.4 in 2024** to **6.3 in 2027** [7] Risks and Considerations - Upside risks include potential vehicle purchasing stimulus extensions and stronger-than-expected profitability from key products [13] - Downside risks involve a notable slowdown in domestic vehicle demand and expanding losses in NEV businesses due to price competition [13] Conclusion Geely Automobile Holdings is positioning itself for significant growth in both domestic and international markets, with a strong focus on profitability and operational efficiency. The company's strategic initiatives and favorable market conditions could provide substantial investment opportunities moving forward.