2025-12-01 00:49Summary of Geely Automobile Conference Call Industry and Company Overview - Company: Geely Automobile - Industry: Automotive, specifically focusing on electric vehicles (EVs) and high-end models Key Points and Arguments - Export Growth: Geely's exports continue to grow significantly, especially in non-Russian markets, with expectations for continued high growth next year. The export of new energy vehicles (NEVs) has reached approximately 40% of total exports, which is expected to enhance the company's profitability [2][11]. - Zeekr Brand Performance: The Zeekr brand has shown outstanding performance, with the Zeekr 009 being the best-selling MPV in the 400,000+ price segment. The Zeekr 9X, priced around 500,000, delivered 4,000 units in October, with a high proportion of top-spec orders. This model is anticipated to be a significant growth driver in the coming months [2][4][8]. - Galaxy Series Success: The Galaxy series has maintained a strong product cycle since the first half of the year, with total deliveries reaching approximately 130,000 units by October, doubling year-on-year. This has significantly increased Geely's penetration in the NEV market [2][6]. - Sales Projections for Zeekr 9X: If the Zeekr 9X can achieve monthly deliveries of 5,000 to 10,000 units, it could result in annual sales of 80,000 units, contributing approximately 40 billion in revenue and 4 to 6 billion in net profit, enhancing the overall net profit elasticity by about 40% [2][8]. - Lynk & Co Brand Growth: The Lynk & Co brand has seen significant growth, with monthly year-on-year growth rates of 20% to 30%. In October, sales surpassed 40,000 units, with NEVs accounting for 72%. The Lynk 900, a plug-in large SUV, continues to grow in sales, indicating Geely's success in the high-end market [2][10]. Additional Important Insights - Overall Sales Performance: In the first ten months of the year, Geely's total wholesale sales approached 2.5 million units, a year-on-year increase of about 44%. NEV sales exceeded half of total sales, reaching 1.3 million units, a 106% increase year-on-year [3][10]. - Market Competition: The passenger car market is expected to become more competitive in 2026, particularly in the 200,000 price range, with various manufacturers expanding their product lines. However, the luxury segment, especially for Geely's Zeekr brand, remains favorable [7][10]. - Valuation and Market Perception: Geely's current market capitalization is approximately 150 billion, corresponding to a net profit of around 16 billion, resulting in a price-to-earnings ratio of only 10 times. This valuation does not fully reflect the value of its luxury brands, suggesting potential for market re-evaluation if high-end models like the Zeekr 9X continue to perform well [4][9]. - Future Outlook: Geely's luxury brand acceptance is expected to drive valuation increases. The privatization of Zeekr Technology and its full ownership by Geely is anticipated to enhance performance elasticity. Additionally, the reduction in NEV purchase tax may lead to a temporary rebound in fuel vehicle sales, while Geely maintains strong performance in this segment [11]. Overall, Geely Automobile is positioned for significant growth in both volume and pricing, with a focus on enhancing its luxury brand perception in the market.