Geely Automobile Holdings_ Ambitious 2025 target

Summary of Geely Automobile Holdings Conference Call Company Overview - Company: Geely Automobile Holdings - Industry: Automotive - Region: Asia Pacific Key Points 2025 Sales Targets - Geely aims to achieve 2.71 million vehicle sales in 2025, representing a 25% year-over-year (YoY) increase [1] - Breakdown by brand: - Geely core brand: 2 million units (+20% YoY) - ZEEKR: 320,000 units (+44% YoY) - Lynk & Co: 390,000 units (+37% YoY) - New Energy Vehicles (NEV) are expected to constitute over 55% of total sales and become profitable in 2025 [1][2] Overseas Sales Strategy - Geely plans to sell 467,000 vehicles overseas (+15% YoY), with: - Geely + Galaxy: 400,000 units - Lynk + ZEEKR: 67,000 to 70,000 units - Key growth regions include Eastern Europe, the Middle East, Southeast Asia, Latin America, and Africa [2] New Model Launches - Geely's core brand will introduce a new NEV model every two months starting March 2025, including: - Two SUVs and three sedans - ZEEKR will launch three models in 2025: - A shooting brake BEV in Q2 - A full-sized SUV PHEV in Q3 - A mid-to-large size SUV PHEV in Q4 - Lynk will introduce one SUV and one sedan PHEV in Q2 and Q3 respectively [3] Production Capacity - Completion of KD (knock-down) plants is expected to add 100,000 units to production capacity [2] Financial Projections - Revenue projections for the fiscal years: - 2023: Rmb 179,204 million - 2024: Rmb 224,371 million - 2025: Rmb 292,996 million - 2026: Rmb 327,483 million - Earnings per share (EPS) estimates: - 2023: Rmb 0.53 - 2024: Rmb 0.71 - 2025: Rmb 0.90 - 2026: Rmb 1.10 [5] Risks and Challenges - Potential risks include: - A slowdown in domestic vehicle demand - Expanding losses in NEV businesses due to price competition - Challenges in overseas sales from competition and protectionism [11] Analyst Ratings - Morgan Stanley rates Geely as Overweight with a price target of HK$11.20 [5] Additional Insights - The company is focusing on enhancing existing models with upgrades in electronic architecture, smart driving, and overall driving performance [3]