2025-05-07 15:20Summary of Geely Automobile Conference Call Company Overview - Company: Geely Automobile - Key Event: Privatization of Zeekr and acquisition of Lynk & Co shares Core Points and Arguments - Privatization of Zeekr: Geely announced a non-binding offer to privatize Zeekr at $2.566 per share, representing a 13% premium based on the average price over the last 30 trading days. This move aims to enhance internal integration and reduce costs, especially given the low valuation of Zeekr in the US market [2][3] - Acquisition of Lynk & Co: Geely completed a 100% acquisition of both Zeekr and Lynk & Co, which is expected to improve operational efficiency and resource integration [2][4] - Sales Performance: During the May Day holiday, Geely's sales increased by approximately 10% year-on-year, driven by the popularity of the Galaxy series models, which have received positive customer feedback for their spaciousness and high configuration [2][5] - Development Stages: Geely has undergone five development stages, from establishment and listing to technological transformation, launching popular models, and now focusing on strategic integration and brand consolidation through the Taizhou Declaration [2][8] - Vehicle Platforms: Geely utilizes multiple vehicle platforms (BMA, CMA, SEA, GEA) to support diverse vehicle production, providing a flexible development foundation [2][10] - Upcoming Technology Launch: Geely plans to launch a super electric hybrid system by the end of Q3 2025, alongside the Zeekr 9X, which is expected to significantly enhance market performance [2][11] - Valuation Analysis: Despite shrinking profit margins in domestic fuel vehicles, Geely's overall market value has a potential upside of 50%, considering overseas profits, revenue from Galaxy and Zeekr, and investment returns [2][23] Additional Important Content - Market Trends: The overall market is expected to recover in the coming months, particularly in the new energy vehicle sector, supporting Geely's new vehicle cycle [2][7] - Brand Integration: The integration of brands like Geometry into Galaxy and the merger of Lynk & Co with Zeekr are part of Geely's strategy to optimize resource allocation and improve operational efficiency [2][12][16] - Competitive Position: Geely claims to possess comparable technology to BYD and emphasizes the importance of governance and technological iteration over individual model sales [2][17] - Future Product Plans: Geely plans to launch five new models this year, including the Starry 8 and Star越 7, to address gaps in fuel vehicle offerings [2][19] - Lynk & Co's New Energy Strategy: Lynk & Co has achieved over 60% penetration in the new energy sector and is set to release a hybrid version of a large sedan [2][21] - Profitability Outlook: In extreme scenarios, Geely's domestic fuel vehicle profits could drop to around 12 billion RMB, but overall market capitalization could reach 230 billion RMB, indicating significant upside potential [2][23]