GEELY AUTO(00175) 国证国际证券·2024-11-22 00:19Investment Rating - The report maintains a "Buy" rating for Geely Automobile, with a target price raised to HKD 19.0, indicating a potential upside of 37% from the current price of HKD 13.9 [4][6]. Core Insights - Geely Automobile's performance exceeded expectations in the first three quarters of 2024, achieving revenue of RMB 167.68 billion, a year-on-year increase of 36%, and a net profit of RMB 13.05 billion, up 358% year-on-year [1][2]. - The growth in performance is attributed to steady sales growth and optimization of the product mix, with cumulative sales from January to October reaching 1.716 million units, a 28.9% increase year-on-year [2][3]. - The introduction of the new generation Raytheon EM-i hybrid technology is expected to accelerate product updates, enhancing fuel efficiency and electric drive efficiency [3]. Financial Performance Summary - For FY2024E, sales revenue is projected to reach RMB 239.34 billion, reflecting a growth rate of 34% [5]. - The net profit for FY2024E is estimated at RMB 15.78 billion, representing a significant increase of 197% compared to FY2023A [5]. - The gross margin for FY2024E is expected to be 15.5%, slightly up from 15.3% in FY2023A [5]. - The average ROE is projected to rise to 17.9% in FY2024E, indicating improved profitability [5]. Strategic Developments - Geely is strategically integrating its brands, with plans to transfer 11.3% of Zeekr Intelligent Technology shares to Geely Automobile, increasing its stake to approximately 62.8% [3]. - The restructuring aims to reduce redundant investments across market segments and enhance collaboration in branding, product development, technology, supply chain, marketing, and international expansion [3].