GEELY AUTO(00175) 国证国际证券·2025-03-05 13:34Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to HKD 22.0, indicating a potential upside of 23% from the current price [1][4][8]. Core Insights - The company has launched the "Qianli Haohan" intelligent driving system, which is expected to enhance product sales and reshape valuation through its multiple AI-driven initiatives [1][4]. - February sales saw a year-on-year increase of 83.9%, with total sales reaching 205,000 vehicles, while cumulative sales for January and February rose by 45.2% [2]. - The company has completed a comprehensive AI-driven layout, including smart architecture, intelligent cockpit, smart energy solutions, and the establishment of a "Smart Car Computing Power Alliance" [3]. Summary by Sections Sales Performance - In February, the company sold 205,000 vehicles, marking an 83.9% year-on-year increase and a 23.2% decrease month-on-month. Cumulative sales for January and February reached 472,000 vehicles, up 45.2% year-on-year [2]. AI and Intelligent Driving Initiatives - The "Qianli Haohan" system features five levels of performance planning, with advanced capabilities such as highway NOA and urban commuting NOA. The system aims to promote intelligent driving technology and safety equity [4]. - The company has developed a self-research AI Drive model and integrated various AI technologies into its manufacturing and operational processes [3]. Financial Projections - The report projects sales revenue to grow from RMB 147.965 billion in FY2022 to RMB 288.745 billion in FY2025, with a compound annual growth rate (CAGR) of 34% from FY2023 to FY2025 [5][12]. - Net profit is expected to increase significantly, with projections of RMB 15.779 billion in FY2024 and RMB 13.774 billion in FY2025, reflecting a 197% growth in FY2024 [5][12]. Market Position and Valuation - The company is positioned as a leader in the Chinese automotive industry, with a market capitalization of approximately HKD 1,803.49 million and a significant shareholder structure led by Li Shufu [8][9]. - The report highlights a strong relative performance over the past year, with a 111.96% absolute return [9].