Morgan Stanley has released a research report stating that the management of Geely Auto attended an investor conference on China hosted by the firm. The company reiterated its overseas sales target of 640,000 units by 2026, of which approximately 300,000 units are expected to be fuel-powered vehicles. In the first quarter of this year, Geely has already achieved 180,000 units, indicating strong progress. The company noted that overseas capacity expansion will prioritize utilizing existing factories to avoid large-scale new investments. Management also set a target to reduce the average cost per vehicle by about 7,000 to 8,000 yuan to offset pressures from rising memory and raw material prices. The first quarter of this year maintained strong pricing discipline, leading to a significant improvement in per-vehicle profitability. Overseas vehicle profits are estimated to reach 13,000 to 15,000 yuan, roughly three times the level in the domestic market. Morgan Stanley maintained its "Overweight" rating and target price of HK$25 for Geely Auto. The report emphasized that overseas sales growth and margin expansion remain the long-term core strategies for Geely, with manageable cost inflation and no price wars expected by the first quarter of 2026, which should help sustain profitability. In 2026, the group is set to intensify its product and technology deployment. The Galaxy and Lynk & Co brands will undergo rapid model iterations, with multiple key new vehicle launches planned throughout the year. On April 13, the group will officially introduce its iHEV technology, which will first be applied to five main models, offering fuel efficiency that surpasses global peers and incorporating a new autonomous driving solution.
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