Core Insights - The company reported a total revenue of 150.285 billion yuan for the first half of 2025, representing a year-on-year growth of 27%, while the net profit attributable to shareholders decreased by 14% to 9.29 billion yuan [1] - The gross margin for the first half of 2025 was 16.4%, down by 0.3 percentage points year-on-year, while the expense ratios showed a decline across various categories [1] Sales Performance - Total sales volume for the first half of 2025 reached 1.409 million units, a year-on-year increase of 47%, with a market share of 10.4%, up by 2.4 percentage points [2] - The sales target for the entire year has been raised to 3 million units [2] - New energy vehicle sales amounted to 725,000 units, marking a 126% year-on-year increase [2] - The Galaxy brand achieved sales of 548,000 units, up 232% year-on-year, while the China Star fuel vehicle sales reached 474,000 units, a 21% increase [2] - The Zeekr brand sold 91,000 units, a 3% increase, and the Lynk brand sold 154,000 units, up 22% [2] - New energy vehicle exports exceeded 40,000 units, reflecting a 146% year-on-year growth [2] Investment Outlook - The company is projected to achieve net profits attributable to shareholders of 15.008 billion yuan, 17.846 billion yuan, and 20.954 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 11.99, 10.08, and 8.59 times [2]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company achieved a total revenue of 150.285 billion RMB in the first half of 2025, representing a year-on-year growth of 27%, while the net profit attributable to shareholders was 9.29 billion RMB, a decline of 14% year-on-year [7] - The gross margin slightly decreased to 16.4%, down by 0.3 percentage points year-on-year, while the expense ratios for sales, management, and R&D also saw reductions [7] - The company experienced growth in both new energy and fuel vehicle sales, with total sales reaching 1.409 million units, a year-on-year increase of 47%, and a market share of 10.4%, up by 2.4 percentage points [7] - The sales target for the year has been raised to 3 million units, with new energy vehicle sales reaching 725,000 units, a 126% increase year-on-year [7] - The company is expected to achieve net profits of 15.008 billion RMB, 17.846 billion RMB, and 20.954 billion RMB for the years 2025, 2026, and 2027 respectively, corresponding to PE ratios of 11.99, 10.08, and 8.59 [7] Financial Performance Summary - Revenue projections for the company are as follows: 179.204 billion RMB in 2023, 240.194 billion RMB in 2024, 337.158 billion RMB in 2025, 396.259 billion RMB in 2026, and 447.102 billion RMB in 2027, with growth rates of 21.11%, 34.03%, 40.37%, 17.53%, and 12.83% respectively [6] - The net profit attributable to shareholders is projected to be 5.308 billion RMB in 2023, 16.632 billion RMB in 2024, 15.008 billion RMB in 2025, 17.846 billion RMB in 2026, and 20.954 billion RMB in 2027, with growth rates of 0.91%, 213.32%, -9.77%, 18.91%, and 17.42% respectively [6] - The company's earnings per share (EPS) are expected to be 0.51 RMB in 2023, 1.64 RMB in 2024, 1.49 RMB in 2025, 1.77 RMB in 2026, and 2.08 RMB in 2027 [6]

2025 INTERIM RESULTS GEELY AUTOMOBILE HOLDINGS LIMITED ( Incorporated in the Cayman Islands with limited liability ) Stock Codes：175（HKD Counter） and 80175（RMB Counter） 2025/08/14 IMPORTANT NOTICE The information contained herein is meant for presentation purposes only and may not be used and relied upon by any other party. It is not to be taken in substitution for the exercise of judgement. You shall be solely responsible for making your own independent investigation of the merits of the discussions mentio ...

Investment Rating - The report maintains a "Buy" rating for Geely Automobile [4][7] Core Views - The company is expected to benefit from marketing reforms and new vehicle launches, which will enhance sales market share [2][11] - The forecasted EPS for 2025-2027 is 1.50, 1.76, and 2.13 RMB respectively, with a target price set at 22.50 RMB or 24.70 HKD [4][7] Financial Performance Summary - Revenue projections for 2023A to 2027E are 179,204 million, 240,194 million, 319,444 million, 381,363 million, and 442,685 million RMB, reflecting growth rates of 21.1%, 34.0%, 33.0%, 19.4%, and 16.1% respectively [6][12] - Operating profit is expected to grow from 3,806 million RMB in 2023A to 20,314 million RMB in 2027E, with a significant increase of 100.8% in 2024A [6][12] - Net profit attributable to the parent company is projected to be 5,308 million RMB in 2023A, increasing to 21,451 million RMB by 2027E, with a notable growth of 213.3% in 2024A [6][12] - The gross margin is expected to improve from 15.3% in 2023A to 16.7% in 2027E, while the net margin is projected to stabilize around 4.7% to 4.8% during the same period [6][12] Market Position and Sales Performance - In July, Geely's total sales reached 237,700 units, a year-on-year increase of 57.7%, with new energy vehicle sales growing by 120.4% [11] - The company's market share is expected to continue rising, with a reported market share of approximately 11% in the first half of 2025, an increase of nearly 3 percentage points year-on-year [11] - The Galaxy series is showing strong sales performance, with July sales of 95,000 units, a year-on-year increase of 469.0% [11]

Investment Rating - The report maintains a "Buy" rating for Geely Automobile [4][7] Core Views - Geely Automobile has raised its annual sales target by 10.7%, from 2.71 million to 3 million units, reflecting the company's confidence in its growth prospects [11] - The company's sales in June reached 236,000 units, a year-on-year increase of 42.1%, with electric vehicle sales growing by 85.5% [11] - The Galaxy series continues to show strong growth, with sales of 90,200 units in June, a year-on-year increase of 201.8% [11] - The report highlights that Geely's strategy is not merely about price cuts but is supported by technological advancements and strong cost control, which are expected to enhance profitability as scale effects are realized [11] Financial Forecasts and Investment Recommendations - Adjusted earnings per share (EPS) forecasts for 2025-2027 are 1.50, 1.76, and 2.13 RMB respectively, up from previous estimates of 1.36, 1.54, and 1.94 RMB [4] - The target price is set at 22.50 RMB, equivalent to 24.69 HKD, based on a price-to-earnings (PE) ratio of 15 times the average for comparable companies [4] - Revenue projections for 2023A to 2027E are 179,204 million, 240,194 million, 319,444 million, 381,363 million, and 442,685 million RMB, with year-on-year growth rates of 21.1%, 34.0%, 33.0%, 19.4%, and 16.1% respectively [6][12] - Operating profit is expected to grow significantly, with projections of 3,806 million, 7,644 million, 14,116 million, 16,739 million, and 20,314 million RMB for the same period [6][12] - The net profit attributable to the parent company is forecasted to be 5,308 million, 16,632 million, 15,121 million, 17,735 million, and 21,451 million RMB, with growth rates of 0.9%, 213.3%, -9.1%, 17.3%, and 21.0% respectively [6][12]

Core Insights - Geely Automobile Holdings Limited reported a significant increase in June sales, with passenger vehicle sales reaching 236,036 units, a year-on-year growth of 42%, marking ten consecutive months of sales exceeding 200,000 units. Cumulatively, the group sold 1,409,180 units in the first half of the year, representing a 47% increase [1][4]. Financial Performance - In Q1 2025, the company achieved a revenue of 72.5 billion yuan, reflecting a 25% year-on-year increase. The net profit attributable to shareholders was 5.67 billion yuan, showing a remarkable growth of 264%. The gross profit margin improved significantly, reaching 15.8% with a total gross profit of 11.4 billion yuan [1][4]. Operational Efficiency - The strong sales performance is attributed to enhanced operational efficiency and profitability, allowing the company to invest more in research and development to improve product quality. Cost reductions through technological innovation and process optimization have also contributed to increased sales [4][6]. Strategic Initiatives - The improvement in operational efficiency and profitability is largely credited to the "Taizhou Declaration" strategy and the "Smart Geely 2025" initiative, which have enabled business integration across brands like Geely, Geely Galaxy, Lynk & Co, and Zeekr. These brands are focusing on user needs and clear brand positioning to compete effectively in the market [4][6]. AI and Technology Development - Geely has completed a comprehensive AI integration, enhancing its core competitiveness through advancements in intelligent driving technology and battery systems. The company recently launched the Starry AI Cloud Power 2.0 and the Thor AI Hybrid 2.0, which focus on energy efficiency, performance, and safety [6]. Sales Target Adjustment - Based on strong sales performance in the first half of the year, Geely has raised its annual sales target by approximately 11%, from 2.71 million to 3 million units, achieving a target completion rate of 47%. The Geely Galaxy brand aims to reach a sales target of 1 million units, with June sales reaching 90,222 units, a 202% increase [9]. Future Product Launches - In the second half of the year, Geely plans to launch six new electric vehicle models and will continue to focus on high-value innovative technologies in AI and automotive safety, aiming to create long-term value and promote sustainable development in the automotive industry [9].

Core Viewpoint - Geely Holding Group emphasizes the importance of open and healthy competition, advocating for value, technology, quality, service, brand, and corporate ethics over price wars as the automotive industry undergoes significant transformation [1] Group 1: Company Strategy - Geely's core value philosophy is centered around user satisfaction, strategic leadership, and ensuring foundational support through its "元动力" concept [1] - The company believes in the necessity of mastering fundamental skills in automotive manufacturing, highlighting that rapid success can harm user experience [4] - Geely's global acquisitions are aimed at learning from established brands to enhance its own manufacturing capabilities and brand respect [4] Group 2: Dual Development Approach - Geely is committed to a dual approach in its development strategy, investing in both intelligent electric vehicles and traditional internal combustion engine vehicles [6] - The company has achieved significant progress in its electric vehicle brands, while also maintaining a focus on hybrid and traditional fuel vehicles to meet market demands [6] Group 3: Technological Advancements - Geely has developed a robust intelligent driving assistance technology system and has made significant advancements in its Flyme Auto smart cockpit technology [7] - The establishment of Zhejiang Jiyao Tongxing Energy Technology Co., which focuses on battery integration, is a key part of Geely's sustainable development strategy [8] Group 4: Global Expansion Strategy - Geely is actively pursuing international expansion, with a focus on localizing operations in Southeast Asia and enhancing collaboration with companies like Volvo in Europe and the U.S. [8] - The company aims to increase market share globally while ensuring that partnerships yield mutual benefits rather than engaging in zero-sum competition [8]

Financial Performance - In Q1 2025, Geely Automobile achieved revenue of 72.495 billion yuan, a 25% increase from 58.225 billion yuan in the same period last year [2][3] - The net profit attributable to shareholders reached 5.672 billion yuan, up 264% from 1.565 billion yuan year-on-year [2][3] - Total sales volume reached 703,800 units, a 48% increase from 475,700 units in the previous year, marking a historical high for the company [3][4] Brand Performance - The Galaxy brand sold nearly 260,000 units in Q1, a 214% increase, with the Star Wish model achieving over 35,000 monthly sales for two consecutive months [4] - The China Star brand sold 330,000 units, a 10% increase, while Lynk & Co sold 73,000 units, up 19%, with 38,000 of those being electric vehicles [4] - Zeekr delivered 41,000 units, a 25% increase year-on-year [4] Strategic Developments - Geely plans to privatize Zeekr, acquiring all issued shares, which would make Zeekr a wholly-owned subsidiary and lead to its delisting from the NYSE [8] - Following the merger of Zeekr and Lynk & Co, management changes were announced, with Li Donghui becoming Vice Chairman and An Conghui as CEO of Geely Holding Group [8][7] - Zeekr reported a total revenue of 22.019 billion yuan in Q1, with vehicle revenue of 19.096 billion yuan, a 16.1% increase year-on-year [7]

Core Viewpoint - The article analyzes the sales performance of major Chinese automotive groups in March and the first quarter of 2023, highlighting the growth trends and competitive dynamics within the industry. Group 1: Q1 Sales Performance - In Q1 2023, BYD led the sales with 980,000 passenger vehicles sold, a year-on-year increase of 57% [7] - Geely Holding ranked second with 946,627 vehicles sold, up 31% year-on-year [7] - SAIC Group came in third with 945,000 vehicles sold, reflecting a 13.3% increase [7] - The top ten Chinese automotive groups saw seven increase in sales and three decrease, indicating a stable growth trend in the industry [8] Group 2: April Sales Updates - Great Wall Motors reported April sales of 100,061 vehicles, a 5.55% increase year-on-year [11] - Geely's April sales reached 234,112 vehicles, up 53%, with 125,563 of those being new energy vehicles, marking a 144% increase [11] - BYD's total sales for April were 380,089 vehicles, a 21.3% increase, with passenger vehicle sales at 372,615, up 19.4% [11] - China FAW Group's April sales surpassed 238,700 vehicles, a 3.5% increase, continuing its steady growth [12] Group 3: New Energy Vehicle Trends - Geely's new energy vehicle sales accounted for 54% of its total sales in April [11] - Chery Group's new energy vehicle sales surged by 85.5% year-on-year [16] - BYD's new energy vehicle sales contributed significantly to its overall growth, with multiple models achieving high sales figures [12] Group 4: Competitive Landscape Among New Forces - Leap Motor led the new forces with April deliveries of 41,039 vehicles, a 173% increase [21] - Xpeng Motors delivered 35,045 vehicles in April, a 273% increase [21] - Li Auto's April deliveries reached 33,939 vehicles, up 31.6% [21] - NIO delivered 23,900 vehicles in April, reflecting a 53% year-on-year increase [21]