Core Viewpoint - Geely Automobile (00175) has announced a HKD 2.3 billion share buyback plan, indicating confidence in its long-term development and signaling undervaluation [1] Group 1: Financial Performance - Geely's September sales showed strong performance, with wholesale volume increasing by 35% year-on-year to 273,000 units, setting a historical record [1] - The wholesale volume of new energy vehicles surged by 81.3% year-on-year to 165,000 units, significantly outpacing industry peers [1] Group 2: Strategic Initiatives - The company is implementing an equity incentive plan aimed at enhancing internal management efficiency and supporting strategic execution [1] - The brokerage maintains a target price of HKD 32 for Geely and an "overweight" rating, anticipating that the third-quarter report will validate performance and potentially lead to the company outperforming the industry in the fourth quarter [1]

Group 1 - The company reported Q1 2025 revenue of 72.5 billion yuan, a year-on-year increase of 24.5%, and a net profit attributable to shareholders of 5.67 billion yuan, a year-on-year increase of 263.4%, exceeding the performance forecast median [1] - Total sales for Q1 reached 704,000 units, with a year-on-year increase of 48.0% and a quarter-on-quarter increase of 2.5%; the average selling price (ASP) per vehicle was 103,000 yuan, a year-on-year decrease of 15.8% due to price competition and an increase in the proportion of lower-priced Geely brand sales [1] - The gross margin for Q1 was 15.8%, a year-on-year increase of 0.2 percentage points, primarily due to scale effects and improved profitability of new energy products [1] Group 2 - The company achieved significant cost control, with sales, R&D, and administrative expense ratios for Q1 at 5.0%, 4.6%, and 2.0%, respectively, showing year-on-year decreases of 2.1, 0.0, and 0.5 percentage points [1] - Other income for Q1 was 3.59 billion yuan, with year-on-year increases of 753.4% and 1613.1%, mainly attributed to foreign exchange gains [1] - After excluding other income and share-based payment expenses, the net profit for Q1 was 2.44 billion yuan, a year-on-year increase of 84.3%, with overall profit per vehicle at 2,900 yuan, a year-on-year increase of 59.1% [1] Group 3 - The company announced plans to acquire all issued shares of Zeekr, further implementing the "Taizhou Declaration" to focus on the automotive main business, enhance resource utilization efficiency, and strengthen its global competitiveness in the smart new energy vehicle sector [2] - The company maintains its net profit forecasts for 2025, 2026, and 2027 at 14.2 billion, 19.6 billion, and 27.1 billion yuan, respectively, with corresponding price-to-earnings ratios of 11, 8, and 6 times, maintaining a "buy" rating for Geely Automobile [2]