Company Performance - In 2025, the company achieved passenger car sales of 3,024,567 units, a year-on-year increase of 39%, exceeding the original target of 3 million units [1] - By brand, sales were 2,449,939 units for the main brand, 224,133 units for Zeekr, and 350,495 units for Lynk & Co, with year-on-year growth of 47%, 1%, and 23% respectively [1] - New energy vehicle sales increased by 90% to 1,687,767 units, accounting for 55.8% of total sales, up 15 percentage points [1] Future Sales Targets - The company set a sales target of 3.45 million units for 2026, representing a year-on-year increase of 14%, with new energy vehicle sales expected to rise by 32% to 2.22 million units [2] - Sales targets for 2026 by brand are 2.75 million units for Geely, 300,000 units for Zeekr, and 400,000 units for Lynk & Co [2] Product Strategy and Profitability - The company is expanding its product matrix, with new models such as the Galaxy E5, A7, and Xingyao 7 aimed at the mainstream market, and six-seat SUVs like Zeekr 9X and Lynk & Co 900 [2] - The integration of Geely, Zeekr, and Lynk & Co is expected to enhance production management synergies and improve profitability [2] Profit Forecast and Valuation - The net profit forecast for 2025 and 2026 has been raised by 3.2% and 8.9% to 17.5 billion yuan and 21.5 billion yuan respectively, with a new forecast for 2027 net profit at 24.9 billion yuan [2] - The current stock price corresponds to price-to-earnings ratios of 10.4x for 2025, 8.3x for 2026, and 7.0x for 2027, with a target price of 26.00 HKD, indicating a potential upside of 42.9% [2]

Group 1 - The core viewpoint of the report is that Geely Automobile (00175) is experiencing an upward product cycle and multi-brand collaboration, leading to an increase in profitability, with net profit estimates for 2025 and 2026 raised by 3.2% and 8.9% to 17.5 billion and 21.5 billion respectively, and a new estimate for 2027 net profit at 24.9 billion [1] - The company announced that it achieved a passenger vehicle sales volume of 3,024,567 units in 2025, a year-on-year increase of 39%, exceeding the original annual sales target of 3 million units [2] - In terms of brand performance, Geely's main brand, Zeekr, and Lynk & Co achieved sales of 2,449,939 units, 224,133 units, and 350,495 units respectively, with year-on-year growth of 47%, 1%, and 23%. New energy vehicle sales increased by 90% to 1,687,767 units, accounting for 55.8% of total sales [3] Group 2 - The company has set a sales target of 3.45 million passenger vehicles for 2026, representing a year-on-year increase of 14%, with new energy vehicle sales expected to grow by 32% to 2.22 million units. The sales targets for Geely, Zeekr, and Lynk & Co are set at 2.75 million, 300,000, and 400,000 units respectively [3] - The report highlights that Geely is gradually improving its product lineup across various price ranges in the new energy sector, with new models such as the Zeekr 9X, Lynk & Co 900, and Galaxy M9 being introduced to fill market gaps, while also expanding its product line in MPV and off-road categories [3] - The report anticipates that as the integration of Geely, Zeekr, and Lynk & Co progresses, the synergies in production management will gradually be realized, coupled with an upward product cycle, which is expected to demonstrate stronger profitability elasticity [3]

Core Viewpoint - Geely Auto has completed the privatization and merger of Zeekr, making it a wholly-owned subsidiary, which is expected to enhance profits and achieve cost reduction through strategic integration [1] Group 1: Privatization and Financial Impact - The privatization of Zeekr is anticipated to increase Geely's net profit by 2-3 billion yuan by 2026 [1] - Following the privatization, Geely's ownership of Zeekr and Lynk & Co has increased to 100%, facilitating better integration of its four brands: Geely, Galaxy, Lynk & Co, and Zeekr [1] Group 2: New Product Launches and Sales Growth - Geely has entered a strong new product cycle, launching competitive models such as Galaxy A7, Galaxy Star 8, Galaxy Star 6, Galaxy M9, Lynk & Co 10, Lynk & Co 900, and Zeekr 9X [1] - The sales of new models have been robust, with Galaxy A7 and Galaxy Star 8 achieving monthly sales of over 15,000 and 10,000 units respectively [1] - The company expects to introduce 1-2 new models each quarter, maintaining a strong product pipeline [1] Group 3: Sales and Profitability Forecast - In November, Geely achieved sales of 310,000 vehicles, a year-on-year increase of 24% and a month-on-month increase of 1.1% [1] - Projected sales for 2025-2027 are 3.06 million, 3.70 million, and 3.99 million vehicles, representing year-on-year growth of 40%, 21%, and 8% respectively [1] - The introduction of mid-to-high-end models is expected to significantly enhance the company's product structure, leading to higher average selling prices (ASP) and gross margins [1] Group 4: Valuation and Investment Recommendation - Geely is considered one of the top picks for the upcoming recovery in the automotive sector due to its low valuation and strong growth potential [2] - The company's projected net profit for 2025-2027 has been revised upwards to 18.6 billion, 26.3 billion, and 31.6 billion yuan, with corresponding price-to-earnings (PE) ratios of 8.8, 6.3, and 5.2 [2] - A target price of 27.01 HKD is set for 2026, indicating a potential upside of 60%, maintaining a "strong buy" rating [2]

Core Viewpoint - Geely Automobile has completed the privatization and merger of Zeekr, which is now a wholly-owned subsidiary, marking a significant step towards the "One Geely" strategy [1] Group 1: Privatization and Merger - The privatization transaction of Zeekr was finalized on December 22, 2025, with Zeekr delisting from the New York Stock Exchange [1] - Approximately 70.8% of eligible Zeekr holders chose stock compensation, resulting in the issuance of 777,228,611 shares by Geely [1] - Geely will pay around $701 million in cash to the remaining 29.2% of eligible Zeekr holders who opted for cash compensation [1] Group 2: Brand Strategy and New Product Launches - Geely plans to launch 10 new energy models in 2025, including 5 new models and several facelifts under the Geely brand [2] - Zeekr will introduce the Zeekr 007 GT in April and the Zeekr 9X in Q3, while Lynk & Co will launch the Lynk & Co 900 EM-P in Q2 [2] - The new models will feature advanced driving assistance systems, with the Lynk & Co 900 EM-P being the first to use the NVIDIA Thor chip [2] Group 3: New Platform and Profitability - The GEA architecture supports the new product cycle, with positive developments across Zeekr, Lynk & Co, and Galaxy brands [3] - The transition to new energy vehicles is progressing well, with scale effects expected to enhance profitability [3] - The company forecasts a net profit of 17 billion yuan for 2025, with a corresponding PE ratio of 9.7X, maintaining a "buy" rating [3]

Investment Rating - The investment rating for Geely Automobile is "Buy" and is maintained [6]. Core Viewpoints - Geely Automobile has completed the privatization and merger of Zeekr, which is now a wholly-owned subsidiary, marking a significant step towards the "One Geely" strategy. This integration is expected to enhance brand positioning, streamline internal resources, and improve cost efficiency, thereby boosting competitiveness [2][7]. - The company plans to launch 10 new electric vehicle models in 2025, with significant contributions from its Geely, Zeekr, and Lynk & Co brands. This includes the introduction of new models and upgrades, focusing on electrification and smart technology [7]. - Geely's new product architecture (GEA) supports its transition to electric vehicles, with a solid foundation in traditional fuel vehicles. The company is expected to see a net profit of 17 billion yuan in 2025, corresponding to a PE ratio of 9.7X, indicating substantial profit potential [7].

Core Viewpoint - Geely Automobile's recent privatization of Zeekr is expected to enhance profitability and streamline operations, leading to increased net profit forecasts for 2025-2027 [1][2]. Group 1: Financial Projections - Geely's net profit estimates for 2025, 2026, and 2027 have been revised upwards to 18.6 billion, 26.3 billion, and 31.6 billion yuan, respectively, with corresponding PE ratios of 8.8x, 6.3x, and 5.2x [1]. - The completion of Zeekr's privatization is anticipated to add 2-3 billion yuan to Geely's net profit in 2026 [2]. - The company expects net profit margins to improve, with projections of 5.5%, 5.9%, and 6.4% for 2025, 2026, and 2027, respectively [4]. Group 2: Sales and Market Performance - Geely's sales reached 310,000 units in November, reflecting a year-on-year increase of 24% and a month-on-month increase of 1.1% [4]. - The company forecasts total sales of 3.06 million, 3.70 million, and 3.99 million units for 2025, 2026, and 2027, representing year-on-year growth of 40%, 21%, and 8% [4]. - The introduction of new models, including the Galaxy A7 and Galaxy M9, is expected to maintain a strong product cycle, with anticipated monthly sales of over 10,000 units for high-end models [3]. Group 3: Strategic Initiatives - The integration of Zeekr, Lynk & Co, and other brands under Geely is expected to create synergies that will lower costs and enhance efficiency [2]. - The company is focusing on high-end models, which are projected to significantly improve product structure and profitability [4]. - Geely is positioned as a preferred stock for potential valuation recovery in the automotive sector, given its strong growth and low valuation compared to peers [5].

Core Viewpoint - Geely Automobile's net profit forecasts for 2025-2027 have been raised due to recent sales performance and the privatization of Zeekr, with a target price of HKD 27.01, indicating a potential upside of 60% [1] Group 1: Privatization Impact - The completion of Zeekr's privatization allows Geely to fully own Zeekr and Lynk & Co, expected to increase net profit by CNY 2-3 billion in 2026 [2] - The integration of Geely, Galaxy, Lynk & Co, and Zeekr is anticipated to enhance operational efficiency through synergies [2] Group 2: New Model Launches - Geely continues to launch competitive new models, maintaining a strong product cycle with high hit rates, including the Galaxy A7 and Galaxy Star models, achieving monthly sales of over 15,000 and 10,000 units respectively [3] - The company plans to introduce 1-2 new models each quarter, sustaining the strong new product cycle into the next year [3] Group 3: Sales and Profit Growth - In November, Geely achieved sales of 310,000 units, a year-on-year increase of 24%, with projected sales of 3.06 million, 3.7 million, and 3.99 million units for 2025-2027, reflecting growth rates of 40%, 21%, and 8% respectively [4] - The introduction of mid-to-high-end models is expected to significantly improve the product mix, leading to higher average selling prices (ASP) and gross margins, with net profit forecasts of CNY 18.6 billion, CNY 26.3 billion, and CNY 31.6 billion for 2025-2027 [4] Group 4: Valuation and Market Position - Geely is considered one of the top picks for the upcoming recovery in the automotive sector, with a low valuation and strong growth potential, trading at PE ratios of 8.8 and 6.3 for 2025-2026 [5] - The current pessimistic market sentiment is seen as an opportunity for investment, as the company's fundamentals are expected to diverge positively from its valuation [5]

Investment Rating - The report maintains a "Strong Buy" rating for Geely Automobile (00175.HK) [1] Core Views - The completion of the privatization of Zeekr enhances profits and promotes strategic integration, expected to increase net profit by 2-3 billion RMB in 2026 [1] - The company is in a strong new product cycle with high hit rates for new models, including the Galaxy A7 and Galaxy M9, which are expected to maintain strong sales [1] - Sales growth combined with a shift towards higher-end models is anticipated to significantly boost profits, with projected net profit margins increasing to 6.4% by 2027 [1] - Geely is considered a top pick for the upcoming recovery in the automotive sector due to its low valuation and strong growth potential [1] Financial Summary - Total revenue projections for 2024A, 2025E, 2026E, and 2027E are 241,099 million RMB, 349,740 million RMB, 448,010 million RMB, and 496,572 million RMB respectively, with year-on-year growth rates of 33.5%, 45.1%, 28.1%, and 10.8% [1] - Net profit forecasts for the same years are 16,632 million RMB, 18,645 million RMB, 26,296 million RMB, and 31,749 million RMB, reflecting growth rates of 213.3%, 12.1%, 41.0%, and 20.7% [1] - Earnings per share (EPS) are projected to be 1.65 RMB, 1.74 RMB, 2.45 RMB, and 2.96 RMB for 2024A, 2025E, 2026E, and 2027E respectively [1] - The price-to-earnings (P/E) ratio is expected to be 9, 9, 6, and 5 for the same years [1]

Investment Rating - The investment rating for Geely Automobile is "Buy" and is maintained [6]. Core Views - Geely Automobile reported a total sales volume of 310,000 units in November 2025, representing a year-on-year increase of 24.1% and a month-on-month increase of 1.1%. Cumulatively, from January to November 2025, total sales reached 2.788 million units, up 41.8% year-on-year. The new platform is expected to empower Geely to enter a new product era [2][4][7]. - The GEA architecture supports a new vehicle cycle, with positive developments across the Zeekr, Lynk & Co, and Galaxy brands. The transition to new energy vehicles is progressing smoothly, and the scale effect is expected to enhance profitability. The company maintains a solid foundation in fuel vehicles, and joint ventures are exploring innovative overseas expansion models. The smart driving strategy is set to accelerate the enhancement of intelligent driving capabilities, indicating significant profitability elasticity in the new vehicle cycle [2][7]. Summary by Sections Sales Performance - In November 2025, Geely's sales were 310,000 units, with a breakdown of 247,000 for the Geely brand, 35,000 for Lynk & Co, and 29,000 for Zeekr. Year-on-year growth rates were 29.4%, 7.3%, and 6.8%, respectively. The Galaxy model saw a remarkable year-on-year increase of 76.3% with sales of 133,000 units [7]. - The export volume in November was 42,000 units, reflecting a year-on-year increase of 22.2% [7]. New Energy Vehicles - In November, new energy vehicle sales reached 188,000 units, marking a year-on-year increase of 53.4% and accounting for 60.5% of total sales, which is an increase of 11.5 percentage points year-on-year [7]. Product Strategy - Geely plans to launch 10 new energy models in 2025, including 5 new models and several facelifts under the Geely brand. The Zeekr brand will introduce the Zeekr 007 GT and Zeekr 9X, while Lynk & Co will launch the Lynk 900 EM-P [7]. - The company is fully embracing smart technology, with a significant increase in the adoption rate of intelligent driving features across its new and updated models [7]. Financial Outlook - The expected net profit for 2025 is projected to be 17 billion yuan, with a corresponding price-to-earnings ratio of 9.2 times, indicating a strong outlook for profitability [7].

Core Viewpoint - Geely Automobile reported strong growth in revenue and profit for the first three quarters of 2025, driven by new vehicle launches and an increase in market share [1][2]. Financial Performance - For the first three quarters of 2025, Geely achieved revenue of 239.48 billion yuan, a year-on-year increase of 26.4%, and total sales of 2.17 million vehicles, up 45.7% year-on-year, with a core net profit of 10.62 billion yuan, reflecting a 59% increase [1]. - In Q3 2025, revenue reached 89.19 billion yuan, a year-on-year increase of 26.5% and a quarter-on-quarter increase of 14.7% [1]. - The net profit for Q3 2025 was 3.82 billion yuan, up 59.3% year-on-year and 5.6% quarter-on-quarter, with a per vehicle profit of 0.5 thousand yuan, an increase of 11.8% year-on-year [2]. Sales and Market Share - Q3 2025 saw total sales of 761,000 vehicles, with significant contributions from the Galaxy, Lynk & Co, and Zeekr brands, showing year-on-year growth of 42.5%, 169.7%, and 25.5% respectively [1]. - Geely's market share reached 10.2% in the first three quarters of 2025, indicating a continuous increase [1]. Brand Strategy and Product Development - Geely plans to launch 10 new energy models in 2025, including five new models and several updated versions, with a focus on electric and intelligent vehicles [3]. - The company is enhancing its smart driving capabilities, with new models featuring advanced driving assistance systems [3]. Operational Efficiency - The gross profit margin for Q3 2025 was 16.6%, reflecting a year-on-year increase of 1.1 percentage points, while the sales expense ratio was 6.0%, showing a slight improvement [2]. - The company is benefiting from economies of scale and improved brand integration efficiency, leading to cost reductions [2]. Future Outlook - Geely's new platform, GEA architecture, supports a strong product cycle, with expectations for a net profit of 17 billion yuan in 2025, corresponding to a PE ratio of 9.2X [4].