Investment Rating - The report maintains an "Outperform" rating for Geely Automobile Holdings with a target price of HK$28.85 [2][4][15]. Core Insights - Geely's vehicle sales reached 1.409 million units in the first half of 2025, with expectations for significant growth in the second half due to a faster rollout of new models, likely exceeding the revised target of 3 million units for the year [4][15]. - The merger with Zeekr is expected to enhance Geely's core EV assets and strengthen its group platform strategy, aligning with the "One Geely" vision [5][16][17]. - The report forecasts vehicle deliveries of 3.11 million, 3.56 million, and 4.00 million units for 2025, 2026, and 2027, respectively, with NEV penetration rates of 56%, 57%, and 65% [4][15]. Financial Projections - Revenue is projected to grow from RMB 240.19 billion in 2024 to RMB 322.07 billion in 2025, with a year-on-year growth rate of 34% [9][10]. - Net profit is expected to remain stable at RMB 16.61 billion in 2025, with projected EPS of RMB 1.65, RMB 1.91, and RMB 2.07 for 2025, 2026, and 2027, respectively [9][10][13]. - The gross profit margin is anticipated to improve gradually, reaching 16.5% in 2025 and 16.8% by 2027 [9][10]. Strategic Merger Details - The merger with Zeekr, finalized on July 15, 2025, involved Geely acquiring all outstanding shares of Zeekr for approximately US$2.4 billion, with shareholders given the option of cash or stock [5][16]. - This merger is seen as a strategic move to consolidate resources, enhance operational efficiency, and secure core assets under Geely's control [6][19]. Product Launch Pipeline - Geely plans a robust product launch schedule in the second half of 2025, including several new models across its brands, which is expected to support the sales target of 3 million units [7][17].

Core Viewpoint - The merger between Geely Automobile and Zeekr marks a significant consolidation in the Chinese automotive industry, aimed at enhancing competitiveness and operational efficiency in the face of industry challenges [1][4][11] Strategic Transformation - The merger is a strategic response to the challenges posed by the rapidly changing automotive landscape, with Geely's CEO emphasizing the need for quick integration to improve competitiveness [6][11] - Geely's "One Geely" strategy aims to eliminate internal resource waste and streamline operations across its various brands [4][6] Financial Aspects - Geely acquired the remaining 37.2% of Zeekr for approximately 17.2 billion RMB, with cash and stock options providing a premium over previous trading prices [3][4] - Since its listing in early 2024, Zeekr's market value has dropped from $11 billion to $5.7 billion, a decline of 48% [6] Synergy and Efficiency - The merger is expected to create synergies that will reduce R&D costs by 10%-20% and supply chain costs by 5%-8%, while improving production capacity utilization by 3%-5% [7][8] - The integration of Zeekr's technology with Geely's existing resources is anticipated to enhance the overall technological capabilities and accelerate product development [7][8] Market Positioning - Post-merger, the brand structure will be clearer, with Zeekr focusing on the luxury electric vehicle market, Lynk & Co on the mid-range hybrid sector, and Geely on the mainstream market [7][8] - The merger will expand Zeekr's market reach from 50 to 200 cities, significantly increasing its penetration in lower-tier markets [8][10] Customer Impact - Existing Zeekr customers are assured that their ownership experience will remain unchanged, with potential enhancements in service and technology offerings [9][10] - The merger is expected to lead to more competitive pricing and better configurations for new models, benefiting consumers [9][10] Industry Implications - This merger is seen as a shift from chaotic competition to a more systematic approach within the electric vehicle sector, setting a precedent for resource consolidation [10][11] - Analysts view the merger as a positive signal for Geely, with several investment firms raising their target prices for the company [10][11]

Group 1 - The company sold 236,000 vehicles in June, representing a year-over-year increase of 42.1% [1] - For the first half of the year, the company achieved total vehicle sales of 1.41 million, a year-over-year increase of 47.4% [2] - The company raised its annual sales target to 3 million vehicles, which is a 38% increase compared to the previous year [1][2] Group 2 - The company held a technology launch event for the Zeekr 9X on July 9, introducing the world's first full-stack 900V high-voltage hybrid architecture, SEA-S [1][3] - The Zeekr 9X is expected to start pre-sales at the end of August and is positioned as the brand's flagship hybrid model [3] - The Zeekr 9X features a maximum engine power of 205 kW and a thermal efficiency exceeding 46%, with a 20%-80% battery recharge time of only 9 minutes [3] Group 3 - The company expects to see significant profit growth, with net profits for 2025, 2026, and 2027 projected at 13.84 billion, 17.9 billion, and 22.3 billion yuan respectively, reflecting year-over-year increases of 47%, 30%, and 24% [1][3] - The current stock price corresponds to P/E ratios of 11, 8.6, and 7 for the years 2025, 2026, and 2027, respectively, with a recommendation to "buy" [1][3]

Investment Rating - The report maintains a "Buy" rating for the company [2][5] Core Views - The company has shown significant growth in Q1, with revenue reaching 72.495 billion yuan, a year-on-year increase of 24.5%, and net profit attributable to shareholders at 5.672 billion yuan, up 263.6% year-on-year [9] - The gross margin improved to 15.8%, reflecting a 0.2 percentage point increase, driven by record sales, growth in the new energy sector, product mix optimization, and scale effects [9] - The company aims to fully integrate its brands under the "One Geely" strategy, enhancing resource synergy and competitiveness in the passenger vehicle market [9] Financial Forecasts and Investment Recommendations - Adjusted revenue and gross margin forecasts predict EPS for 2025-2027 to be 1.36, 1.54, and 1.94 yuan respectively, with a target price set at 20.40 yuan [2] - The company is expected to achieve a revenue of 305.782 billion yuan in 2025, with a year-on-year growth of 27.3% [4] - The net profit attributable to shareholders is projected to be 13.716 billion yuan in 2025, reflecting a year-on-year decrease of 17.5% [4] Key Financial Information - The company reported a revenue of 179.204 billion yuan for 2023, with a year-on-year growth of 21.1% [4] - The gross profit for 2023 was 27.415 billion yuan, with a gross margin of 15.3% [4] - The net profit attributable to shareholders for 2023 was 5.308 billion yuan, with a net margin of 3.0% [4] Sales Performance - The company sold a total of 703,800 vehicles in Q1, marking a 47.9% increase year-on-year, with new energy vehicle sales reaching 339,200 units, up 135.4% [9] - The penetration rate of new energy vehicles in the domestic market reached 52.2%, exceeding the industry average [9] Strategic Developments - The company is advancing its "Taizhou Declaration," focusing on its core automotive business and plans to privatize and integrate the Zeekr brand to enhance operational efficiency [9]

Core Viewpoint - Geely Auto is undergoing significant restructuring, including the planned acquisition of Zeekr, which aims to fully integrate the two companies and enhance operational efficiency in the high-end electric vehicle market [1][3][10]. Group 1: Company Strategy and Restructuring - Geely Auto's recent quarterly earnings meeting included discussions on the merger with Zeekr, marking a shift towards a unified strategy called "One Geely" [1][3]. - The merger will result in key executive changes, with An Conghui becoming the CEO of Geely Holding Group and Gan Jiayue taking over as CEO of the merged Geely Auto [1][3]. - The strategic integration aims to streamline operations and improve management efficiency, which is seen as essential in the competitive Chinese automotive market [7][13]. Group 2: Financial Performance - In Q1 2025, Zeekr Technology Group reported total revenue of 22.019 billion yuan, with vehicle revenue of 19.096 billion yuan, reflecting a year-on-year growth of 16.1% [10][11]. - The gross margin for Zeekr's vehicles reached 21.2%, an increase of 7.2 percentage points year-on-year, indicating improved profitability [11]. - The merger is expected to yield significant cost savings, with projected reductions in procurement costs by 3% and enhancements in R&D efficiency by 10-20% [13]. Group 3: Market Position and Product Strategy - Zeekr has established itself as a strong player in the high-end electric vehicle segment, with the Zeekr 001 achieving over 70,000 deliveries in its first full year [3][4]. - The recent launch of the Zeekr 007GT at a lower price point than expected, despite its higher production costs, showcases the brand's competitive pricing strategy [15]. - Future product launches include the Zeekr 9X and Zeekr 8X, targeting the premium market segment, while the Lynk & Co Z10 will cater to a more budget-conscious audience [17][18].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 29.65 [7][12]. Core Views - The company reported Q1 revenue of RMB 72.5 billion, a year-on-year increase of 25%, and a net profit attributable to shareholders of RMB 5.7 billion, up 264% year-on-year, aligning with expectations [1][5]. - The company is expected to benefit from the new car cycle driven by the GEA platform, with strong sales of new models like the Xingyao 8, which is projected to sell over 8,000 units monthly [4][12]. - The proposed privatization of Zeekr by Geely aims to enhance internal integration and reduce inefficiencies, potentially increasing group efficiency by over 5% and improving R&D and management efficiency by 15-20% [3][12]. Financial Performance - In Q1 2025, the company sold 700,000 new vehicles, a 48% increase year-on-year, with a gross margin of 15.8%, reflecting improvements in cost management [2][5]. - The company forecasts revenues of RMB 344.4 billion, RMB 370.8 billion, and RMB 422.5 billion for 2025, 2026, and 2027 respectively, with net profits of RMB 13.8 billion, RMB 15.5 billion, and RMB 19.4 billion for the same years [6][12]. - The report indicates an expected EPS of RMB 1.37, RMB 1.53, and RMB 1.92 for 2025, 2026, and 2027 respectively, with a projected PE ratio of 20x for 2025 [5][12]. Market Outlook - The company is set to launch several new models, including the Lynk & Co Z10 and Zeekr 9X, which are anticipated to enhance revenue and profitability [4][12]. - The report highlights the importance of the GEA platform in driving profitability and operational efficiency, suggesting a positive outlook for the company's future performance [3][12].