Everbright Securities reiterated its "Buy" rating on GEELY AUTO (00175) and raised its target price to HK$26.01, citing robust Q3 2025 performance, strong sales growth, and accelerating global expansion. Key highlights include a 26.5% YoY revenue increase, a 59% surge in core net profit attributable to shareholders, and standout performances from new models like the Galaxy series.
**Q3 2025 Earnings Beat Expectations** GEELY AUTO reported total revenue of RMB891.9 billion in Q3 2025, up 26.1% YoY and 14.7% QoQ, with gross margin improving 1.2 percentage points YoY to 16.6%. Core net profit attributable to shareholders rose 19% YoY and 25% QoQ to RMB39.6 billion, while reported net profit grew 57.6% YoY to RMB38.2 billion.
**Sales Momentum and Market Share Gains** Total vehicle sales surged 45.7% YoY to 2.17 million units in the first nine months of 2025, with NEVs accounting for 53.8% of sales (up 17.2 percentage points YoY). Q3 sales reached 761,000 units (+42.5% YoY), with NEV penetration hitting 58.2%. The Galaxy series saw sales jump 205.6% YoY, while the Lynk & Co and Zeekr brands demonstrated synergies post-integration.
**Zeekr Privatization and Global Expansion** The Zeekr privatization is progressing smoothly, with legal hurdles cleared for its delisting and merger with GEELY AUTO, expected to close by end-2025. The integration aligns with GEELY’s "One Geely" strategy, aiming for resource optimization and cost efficiencies. Management targets over 1,000 overseas sales outlets by 2026 and 1 million export units by 2027, supported by global launches of models like the Galaxy E5 and Zeekr 9X.
**Profit Forecast and Valuation** Everbright raised its 2025E–2027E net profit forecasts by 10%/3%/6% to RMB17.74/19.18/21.23 billion, valuing GEELY at 13.5x 2025E P/E. Risks include slower-than-expected sales growth, delays in Zeekr’s privatization, and intensifying competition.
Comments