GEELY AUTO(US:GELYY)2025-03-23 15:39Summary of Geely Automobile Holdings 4Q24 Earnings Call Company Overview - Company: Geely Automobile Holdings - Industry: China Autos & Shared Mobility - Date of Call: March 20, 2025 Key Takeaways Industry and Company Performance - Geely aims for a sales volume of 2.71 million vehicles in 2025, representing a 24.5% year-over-year increase [2] - The company targets 1.5 million NEV (New Energy Vehicle) sales, which is a 69% year-over-year increase, with plans to launch ten new models in 2025 [9] Product Development - The new model cycle includes 2 additional SUVs and 2 additional sedans, covering segments from A0 to B+ class [2] - All new models will feature the Qianli Haohan autonomous driving (AD) system [2] - Geely is committed to internal combustion engine (ICE) development while integrating AD functions [2] International Expansion - Geely targets 467,000 overseas sales, a 15% year-over-year increase, aiming to become the top Chinese brand in the Middle East and among the top three in Eastern Europe [3] - The company anticipates 100% year-over-year volume growth in the Asia-Pacific and Latin America regions [3] - By leveraging partnerships with Volvo, Geely plans to expand its 4S channels from 46 to 150 by year-end [3] Technological Advancements - Geely has developed a comprehensive AI capability for autonomous driving, smart cockpits, and related technologies, accumulating 10 billion kilometers of real driving data [4] - The company boasts 23.5 EFLOPS of computing power across its ecosystem partners, enhancing AD training and AI features [4] - ZEEKR, a subsidiary, plans to launch door-to-door autonomous driving functions in April [4] Financial Outlook - Profitability is expected to improve with a 16.5% gross profit margin (GPM) in 2025, up from 15.9% in 2024, driven by a better product mix and cost reduction efforts [9] - Geely has Rmb 40 billion in cash as of December 2024, indicating no immediate fundraising plans [9] Risks and Challenges - Potential risks include a slowdown in domestic vehicle demand and expanding losses in NEV businesses due to price competition [12] - Competition and protectionism may hinder overseas sales growth [12] Market Position - Current stock rating for Geely is Overweight with a price target of HK$21.00 [6] - The stock closed at HK$17.98 on March 19, 2025, with a market capitalization of Rmb 168.26 billion [6] Conclusion Geely Automobile Holdings is positioning itself for significant growth in 2025 through new model launches, international expansion, and technological advancements in autonomous driving. The company is optimistic about profitability improvements while being mindful of potential market risks.