Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company leverages platform-based manufacturing and maintains competitive advantages in a fiercely competitive market. It focuses on high-value products, extreme cost performance, and product strength, successfully creating several popular models. The high-end brands Zeekr and Lynk & Co have gained considerable audience recognition due to unique product designs, strong electric systems, and exceptional safety features, with high-priced models expected to become significant profit sources for the company [2][3]. Financial Forecast and Valuation - The company is expected to achieve revenue of CNY 378.38 billion, CNY 449.38 billion, and CNY 521.76 billion from 2025 to 2027, representing year-on-year growth of 57.5%, 18.8%, and 16.1% respectively. The net profit attributable to shareholders is projected to be CNY 16.66 billion, CNY 18.78 billion, and CNY 22.98 billion during the same period, with year-on-year growth of 0.19%, 12.67%, and 22.38% respectively. The EPS is expected to be CNY 1.7, CNY 1.9, and CNY 2.3, corresponding to PE ratios of 11.0, 9.8, and 8.0 times [3]. Sales and Financial Data - In 2024, the company is projected to achieve a total sales volume of 2.177 million vehicles, a year-on-year increase of 29.1%. The breakdown includes 1.29 million fuel vehicles and 890,000 new energy vehicles, with significant growth in the latter. The sales target for 2025 is set at 3 million vehicles, with the Galaxy brand expected to contribute significantly [11][22][28]. - For the first half of 2025, the company reported revenue of CNY 150.28 billion, a year-on-year increase of 26.5%. The net profit attributable to shareholders was CNY 9.29 billion, a decrease of 13.9% compared to the previous year, but the core net profit showed a significant increase of 101.7% [16][18]. Brand Integration and Strategy - The company has initiated a brand integration strategy, consolidating several brands to enhance operational efficiency and reduce internal competition. The Geometry brand has been integrated into the Galaxy brand, and Lynk & Co has merged with Zeekr, which is expected to streamline operations and improve market competitiveness [31][34][35]. Product Matrix and Market Position - The company has developed a multi-brand strategy with distinct product matrices for Galaxy, Lynk & Co, and Zeekr, targeting various market segments. The Galaxy brand focuses on mid-to-high-end new energy vehicles, while Lynk & Co aims at the high-end market, and Zeekr is positioned as a luxury brand. This strategic positioning is expected to enhance market share and profitability [45][49][52]. Export Growth - The company's export volume reached 414,500 vehicles in 2024, representing a nearly 5.7-fold increase since 2020, with the export ratio rising from 5.5% in 2020 to 19.0% in 2024. This growth in exports is becoming a crucial driver for overall sales improvement [28][30].

Core Viewpoint - Nokia has initiated a patent infringement lawsuit against Geely Group and its brands, including Zeekr and Lynk & Co, targeting their operations in 18 European countries, which is seen as a strategic move against Geely's expansion in Europe [3][8]. Group 1: Patent Infringement Details - The lawsuit involves essential patents in the cellular communication field, specifically focusing on patents EP3799333 and EP4090075 related to 4G/5G technology applications in vehicles [3][8]. - If found guilty of infringement, Geely's vehicles could face a sales ban in key European markets, potentially impacting 20% of its global export share [8]. Group 2: Financial Implications - Geely's projected export volume for 2024 is 414,500 units, with a year-on-year growth of 57%, making the European market a significant contributor [8]. - Nokia's licensing fees through its patent pool Avanci are set at $49 per vehicle, which could result in annual costs exceeding $20 million for Geely based on its export volume [9]. Group 3: Industry Context and Challenges - The lawsuit reflects a broader trend where Chinese automotive companies face increasing patent-related challenges in Western markets, similar to the experiences of Chinese smartphone manufacturers [11]. - Chinese automakers have a weak patent reserve in critical areas like vehicle networking and human-machine interaction, with their overseas patent totals being only one-fifth of Toyota's [11]. Group 4: Recommendations for Chinese Automakers - Industry experts suggest that Chinese automakers should enhance their patent application efforts in key markets and focus on core technologies to build a robust patent defense [12]. - Establishing a professional global intellectual property management team is crucial for navigating patent negotiations and litigation effectively [12].

Core Viewpoint - Geely Automobile reported a total vehicle delivery of 130,866 units in the second quarter, reflecting a year-on-year increase of 9.3% and a quarter-on-quarter increase of 14.8% [1] Delivery Performance - The Zeekr brand delivered 49,337 vehicles [1] - The Lynk & Co brand delivered 81,529 vehicles, with 58.8% of deliveries coming from new energy vehicles [1]

Core Insights - Geely Automobile (00175) reported unaudited financial performance for Zeekr Group in Q2 2025, showing a 2.2% year-on-year increase in automotive sales revenue to RMB 22.916 billion, and a 20.0% quarter-on-quarter increase [1] - Total revenue for Q2 2025 was RMB 27.431 billion, reflecting a 0.9% year-on-year decrease but a 24.6% quarter-on-quarter increase [1] - The net loss for Q2 2025 was RMB 0.287 billion, a significant reduction of 88.8% year-on-year and 62.4% quarter-on-quarter [1] - Adjusted net loss (non-GAAP) for Q2 2025, excluding share-based compensation expenses, was RMB 0.257 billion, down 84.2% year-on-year and 59.8% quarter-on-quarter [1] Automotive Sales Performance - Total vehicle deliveries in Q2 2025 reached 130,900 units, marking a 9.3% year-on-year increase and a 14.8% quarter-on-quarter increase [1] - Zeekr brand delivered 49,337 vehicles, while Lynk & Co brand delivered 81,500 vehicles, with 58.8% of Lynk & Co deliveries coming from new energy vehicles [1] - The increase in automotive sales revenue year-on-year was primarily driven by higher sales of the Lynk & Co brand, partially offset by a decline in Zeekr brand sales [1] - The quarter-on-quarter increase in automotive sales revenue was attributed to the launch of new models in Q2 2025 [1]

Core Viewpoint - Geely Automobile reported a total vehicle delivery of 130,866 units in the second quarter, reflecting a year-on-year increase of 9.3% and a quarter-on-quarter increase of 14.8% [1] Group 1: Delivery Performance - The Zeekr brand delivered 49,337 vehicles [1] - The Lynk & Co brand delivered 81,529 vehicles, with 58.8% of deliveries coming from new energy vehicles [1]

Core Viewpoint - Geely's acquisition of Zeekr marks a strategic move towards the "One Geely" initiative, aiming to consolidate its operations and enhance competitiveness in the global electric vehicle market [1][5][15] Group 1: Acquisition Details - Geely will acquire 100% of Zeekr's issued shares, leading to Zeekr's delisting from the NYSE and becoming a wholly-owned subsidiary [1] - The acquisition price of $2.687 per share represents an 18.9% premium over the last closing price and a 25.6% premium over the 30-day volume-weighted average price [4] - Shareholders of Zeekr have the option to either cash out or exchange for Geely shares, providing flexibility for both short-term liquidity and long-term value [4] Group 2: Strategic Implications - The move is expected to simplify operations, unify strategic direction, enhance synergies, and reduce compliance burdens, ultimately improving efficiency and profitability [5][8] - Full ownership allows for systematic integration of resources across Geely's various brands, reducing redundancy and enhancing collaborative efforts in R&D, supply chain, and marketing [7][8] - The acquisition aligns Zeekr's technological advancements with Geely's strategic goals, ensuring cohesive development and innovation [8] Group 3: Market Position and Performance - Geely's sales reached 1.9317 million vehicles in the first half of 2025, with a significant increase in electric vehicle sales, reflecting strong market performance [10] - The company raised its annual sales target from 2.71 million to 3 million vehicles, indicating confidence in new model launches and market expansion [10] - The acquisition is seen as a pivotal moment for the Chinese automotive industry, signaling a shift from capital competition to efficiency competition [13][15] Group 4: Industry Impact - Geely's strategy may serve as a model for other automakers in the industry, promoting resource optimization and reducing wasteful competition [15] - The integration of Zeekr is expected to enhance Geely's valuation, transitioning it from a traditional automotive manufacturer to a growth stock in the smart electric vehicle sector [15]

Core Viewpoint - Minsheng Securities maintains a "recommended" rating for Geely Automobile, highlighting its recent merger agreement with Zeekr to strengthen the Geely brand and enhance market positioning [1] Group 1: Company Developments - Geely has signed a merger agreement with Zeekr to create a unified Geely brand, which is expected to enhance its market presence [1] - The Galaxy brand under Geely is positioned for the mainstream market, with a focus on launching new products [1] - The collaboration between Zeekr and Lynk & Co aims to capture a significant share of the high-end market [1] Group 2: Financial Projections - Revenue projections for Geely are estimated at 404.78 billion, 489.69 billion, and 572.83 billion yuan for the years 2025, 2026, and 2027 respectively [1] - The expected net profit attributable to shareholders is forecasted to be 16.21 billion, 22.09 billion, and 25.98 billion yuan for the same years [1] - The company's momentum in the new energy vehicle sector is anticipated to accelerate, contributing to profitability growth [1]

Summary of Key Points Core Viewpoint The report provides an overview of the electric vehicle (EV) delivery performance of various new car manufacturers in June 2025, highlighting significant growth and declines in sales across different companies. Company Performance - Xiaomi Auto delivered over 25,000 vehicles in June [1] - Lynk & Co sold 26,310 vehicles, marking an 8% year-on-year increase [1] - Zeekr Technology reported sales of 16,702 vehicles, a 17% decline compared to the previous year [1] - Lantu Auto achieved sales of 10,053 vehicles, reflecting an 83% year-on-year growth [1] - Avita Auto sold 10,153 vehicles, with a remarkable 117% increase year-on-year [1] - NIO delivered 24,925 vehicles, up 17.5% year-on-year [1] - Li Auto's deliveries totaled 36,279 vehicles, down 24% year-on-year [1] - Zhiji Auto delivered 6,027 new vehicles in June [1] - Deep Blue Auto achieved total deliveries of 29,893 vehicles, a 79% year-on-year increase and a 17% month-on-month growth [1] - Hongmeng Zhixing set a new monthly sales record with 52,747 vehicles delivered [1] - BYD's new energy vehicle sales reached 382,600 units, up from 341,700 units in the same month last year [1] - Leap Motor delivered 48,006 vehicles, showing over 138% year-on-year growth, with total deliveries exceeding 220,000 units in the first half of the year [1] - Xpeng Motors delivered 34,611 new vehicles, achieving a 224% year-on-year increase and maintaining over 30,000 deliveries for eight consecutive months [1]

Core Viewpoint - The "2025 China Enterprises Going Global Summit" aims to provide a high-end platform for Chinese companies to address challenges in global expansion and explore collaborative transformation paths in the context of global industrial chain restructuring [1] Group 1: Industry Insights - The automotive industry is described as a marathon where endurance and internal strength are crucial for success, rather than just speed [3] - The current global automotive market is primarily domestic for China, with exports still representing a relatively low percentage [3] - The new era of globalization is characterized by geopolitical changes and restructured trade relations, marking the end of the previous globalization phase [4] Group 2: Company Strategy - Geely Holdings emphasizes the importance of learning world-class technology and experience through significant investments and acquisitions in leading automotive companies [3] - The concept of "root culture" is fundamental to Geely's development, focusing on building strong foundational skills through global investments [3] - Geely aims to integrate its automotive roots with Chinese culture to create a unique automotive culture that resonates globally [4] Group 3: Achievements and Recognition - Geely's brand has gained international recognition, exemplified by its Lynk & Co brand winning 7 championships in the WTCR over 6 years [3] - Geely is the first Asian member of the IATF international automotive working group, contributing to the establishment of global automotive quality standards [4] - The company has developed a global brand matrix that covers high-end, mainstream, and emerging markets, catering to diverse consumer needs [4]

Core Viewpoint - Geely Automobile has shown impressive financial performance in Q1 2025, with revenue of 72.5 billion and a net profit of 2.28 billion, indicating significant growth in both revenue and profit compared to the previous year [1][2]. Financial Performance - In Q1 2025, Geely's revenue reached 72.5 billion, a year-on-year increase of 25% [1]. - The net profit, excluding other income of 35.9 billion, was 2.28 billion, reflecting a 134% year-on-year growth [1][2]. - The company delivered 704,000 vehicles in the quarter, marking a 47.6% increase year-on-year [1]. Market Position and Valuation - Despite strong performance, Geely's price-to-earnings ratio is below 10, and S&P has downgraded its rating to negative due to debt pressure and market competition [2]. - There is speculation that if Geely can challenge BYD's leading position in the new energy vehicle market, its market capitalization could reach 1 trillion, five times its current value [2]. Sales Performance - Geely's sales target for 2023 was 1.65 million vehicles, which was exceeded with actual sales of nearly 1.69 million [5]. - For 2024, the sales target was set at 1.9 million, which was later raised to 2 million, with actual sales reaching 2.18 million, a 29.1% increase [6]. - In the first five months of 2025, Geely's cumulative sales reached 1.173 million, a 48.6% increase year-on-year, representing 43.3% of the annual target [7][9]. New Energy Vehicle Strategy - Geely's new energy vehicle sales have seen significant growth, with a penetration rate approaching 50% by Q1 2025 [11][15]. - The company has adopted a "two-legged" approach, focusing on both pure electric and plug-in hybrid vehicles [16][20]. - In 2023, plug-in hybrid vehicle sales surged, accounting for 45.2% of Geely's new energy vehicle sales by Q4 [17]. Brand Development - Geely's premium brand, Zeekr, has faced challenges, with sales growth slowing in 2025 [30][31]. - The company has acquired a majority stake in Lynk & Co to bolster its market position [34]. - The newly launched Galaxy series has become a key driver of sales growth, contributing significantly to Geely's overall performance [41]. Conclusion - Geely's strong financial results and strategic positioning in the new energy vehicle market highlight its potential for future growth, despite facing challenges in market competition and brand performance [43][44].