Core Viewpoint - The report from China Merchants Securities International indicates that Geely Automobile (00175) is expected to see a significant rebound in per-vehicle profit due to the launch of popular models and high-margin vehicles in the second half of the year [1] Group 1 - The scale effect from popular vehicles and the release of high-priced, high-profit models will drive a substantial increase in per-vehicle profit for Geely Automobile [1] - The export outlook for the second half of the year is optimistic, suggesting potential growth in international markets [1] - The target price remains at HKD 32 with a "Buy" rating, and Geely Automobile continues to be the top pick of the firm [1] Group 2 - The firm anticipates that the reduction in new energy vehicle purchase tax incentives next year will widen the price gap between gasoline and electric vehicles, causing short-term disruptions in demand for mid-to-low-end new energy vehicles [1] - Geely's China Star series gasoline vehicles are expected to maintain strong competitiveness, potentially attracting price-sensitive customers returning to gasoline vehicles [1]

Group 1 - The core viewpoint of the report is that Geely Automobile (00175) is expected to see a significant increase in single-vehicle profit due to the launch of high-priced, high-profit models and the enhancement of scale effects in the second half of the year [1] - The report maintains a target price of HKD 32 and an "Accumulate" rating for Geely Automobile, indicating it remains a top pick for the firm [1] - The export guidance for the second half of the year is optimistic, suggesting potential growth in international markets [1] Group 2 - The firm anticipates that the reduction in new energy vehicle purchase tax incentives next year will widen the price gap between gasoline and electric vehicles, causing short-term disruptions in demand for mid-to-low-end new energy vehicles [1] - Geely's China Star series gasoline vehicles are expected to be competitive and may attract price-sensitive customers returning to gasoline vehicles [1]