GEELY AUTO(00175) 华创证券·2025-03-04 08:00Investment Rating - The report maintains a "Strong Buy" rating for Geely Automobile, expecting it to outperform the benchmark index by over 20% in the next six months [2][19]. Core Views - Geely's AI technology conference on March 3 showcased its advanced intelligent driving system "Qianli Haohan" and highlighted the company's strategic advancements in AI [2]. - The company is accelerating its transformation towards smart technology, with plans to enhance human-machine interaction, fully implement autonomous driving, and elevate vehicle networking capabilities [9]. - Geely's sales and operational performance are projected to grow rapidly in the coming years, supported by its electric vehicle strategy and product enhancements [9]. Financial Summary - Revenue Forecast: - 2023: 179,204 million CNY - 2024E: 245,193 million CNY (growth of 36.8%) - 2025E: 307,205 million CNY (growth of 25.3%) - 2026E: 365,715 million CNY (growth of 19.0%) [5][10] - Net Profit Forecast: - 2023: 5,308 million CNY - 2024E: 16,481 million CNY (growth of 216.4%) - 2025E: 13,636 million CNY (decline of 17.4%) - 2026E: 17,052 million CNY (growth of 25.3%) [5][10] - Earnings Per Share (EPS): - 2023: 0.53 CNY - 2024E: 1.64 CNY - 2025E: 1.35 CNY - 2026E: 1.69 CNY [5][10] - Valuation Ratios: - Price-to-Earnings (P/E) ratio for 2024E: 10.1x - Price-to-Book (P/B) ratio for 2024E: 1.7x [5][10] Target Price - The target price for Geely is set between 22.0 and 29.4 HKD, with a potential upside of 23% to 48% based on the company's historical valuation levels and recent market performance [6][9].