Investment Rating - The report maintains a "Buy" rating for the company [6] Core Insights - The company's profitability continues to improve, with exports expected to become a new growth driver [2] - EPS forecasts for 2025-2027 are adjusted to 1.68, 2.04, and 2.40 RMB respectively, with a target price set at 22.44 RMB and 24.62 HKD, based on a PE ratio of 11 times for comparable companies in 2026 [3] Financial Performance Summary - Revenue (in million RMB) is projected to grow from 179,204 in 2023 to 448,685 in 2027, with year-on-year growth rates of 21.1%, 34.0%, 33.0%, 21.3%, and 15.8% respectively [5] - Operating profit (in million RMB) is expected to increase from 3,806 in 2023 to 23,173 in 2027, with significant growth rates of 4.3%, 100.8%, 110.0%, 22.2%, and 18.1% [5] - Net profit attributable to the parent company (in million RMB) is forecasted to rise from 5,308 in 2023 to 24,318 in 2027, with growth rates of 0.9%, 213.3%, 2.5%, 20.9%, and 18.0% [5] - The gross margin is projected to improve from 15.3% in 2023 to 17.3% in 2027, while the net margin is expected to stabilize around 5.3% [5] Market Position and Strategy - The company is expected to maintain a strong market share, with sales growth outpacing the industry average, particularly in the electric vehicle segment [10] - The company is accelerating its global expansion, with exports anticipated to become a significant source of revenue and profit growth [10]

Core Viewpoint - Geely is undergoing significant internal integration to enhance efficiency and reduce redundancy, aiming to establish a unified brand identity and improve product positioning in the competitive automotive market [1][4][6]. Group 1: Internal Integration and Brand Positioning - Geely's CEO emphasizes the importance of a systematic approach to integration, referring to the company as a "clumsy child" that must steadily progress towards its goals [2][3]. - The integration has clarified brand positioning, with distinct roles for its sub-brands: Zeekr as luxury technology, Lynk & Co as mid-to-high-end performance, and Galaxy as mainstream high-value products [2][4]. - The launch of the Galaxy M9 SUV, priced under 200,000 yuan, showcases Geely's ability to control costs and break market barriers [2][15]. Group 2: Market Challenges and Sales Goals - Geely has raised its annual sales target to 3 million units, reflecting confidence in its growth strategy amid fierce competition in the electric vehicle market [5][17]. - The company aims to accelerate product launches, with several new models, including the Zeekr 9X and Starry 6, set to hit the market soon [5][18]. - Geely's sales from January to August reached 1.897 million units, a 47% year-on-year increase, with domestic growth exceeding 60% [17][19]. Group 3: Technological Advancements and Strategic Partnerships - Geely is focusing on enhancing its smart driving capabilities through a partnership with Qianli Technology, aiming to develop a comprehensive intelligent driving solution [8][10]. - The company is committed to maintaining technological leadership in smart driving, requiring significant investment in AI and engineering capabilities [10][11]. - Geely's R&D investment from 2021 to 2025 exceeds 100 billion yuan, with total R&D spending over 250 billion yuan in nearly 11 years, indicating a shift from investment to harvest phase [16].

Core Viewpoint - Geely Auto is progressing towards the legal merger with Zeekr, with the completion of the acquisition expected by the end of the year, following shareholder approvals [1][2] Group 1: Merger Details - Geely Auto will acquire the remaining 34.3% of Zeekr shares at a price of $2.687 per share, which could cost Geely up to $2.4 billion [1] - Most Zeekr investors are opting for stock exchange rather than cash, indicating confidence in the merged entity [1] - After the merger, Zeekr will become a wholly-owned subsidiary of Geely and will delist from the NYSE [1] Group 2: Strategic Integration - The merger aligns with Geely's "One Geely" strategy aimed at enhancing scale and reducing costs during industry consolidation [2] - Zeekr's independent R&D departments are being integrated into Geely's central research institute, with previous teams already merged [2] - The integration is expected to lead to significant cost savings in R&D and procurement, potentially saving billions annually [5] Group 3: Performance and Market Position - Zeekr's sales have stagnated, with a 3% year-on-year increase in the first half of the year, while the overall EV market grew by 33.3% [5] - Geely's total sales reached 1.409 million units in the first half of the year, a 47% increase, with a market share surpassing 10% [6] - Geely has adjusted its annual sales target upwards by 11% to 3 million units, indicating strong market performance [6]