Caitong Securities: Maintaining Geely Auto's (00175) “Gain” Rating and Steady Improvement of International Competitiveness

Zhitongcaijing · 10/15 01:57

The Zhitong Finance App learned that CaiTong Securities published a report stating that Geely Auto (00175) is expected to achieve net profit of 154.63/107.20/14.232 billion yuan in 2024-2026. The corresponding PE was 7.72/11.13/8.38 times, respectively, maintaining the “gain” rating.

Incident: On October 1, the company announced the sales volume for September 2024. Sales volume in September was 202,000 units, up 21% year on year and 11% month on month. New energy sales in September were 91,000 units, up 76% year on year and 20% month on month. Among them, 64,000 BEVs were sold in September, +107% year over year, and 27,000 PHEVs were sold in September, +29% year over year. In September, 39,000 vehicles were exported, +51% year-on-year.

The main views of Caitong Securities are as follows:

Delivery volume continued to grow year on year, speeding up overseas layout: By brand, the Geely brand sold 155,000 units in September, up 16% year on year, up 10% month on month. Among them, the Galaxy series sold 29,000 units in September, up 122% year on year, up 10% month on month; China Star Premium series sold 43,000 units in September, up 23% month on month. The Lynk & Co brand sold 26,000 units in September, up 18% year on year and 15% month on month. Of these, new energy accounted for more than 67%, and sales volume was 17,000 units, up more than 3.7% month on month. The Extreme Krypton brand sold 21,000 units in September, up 77% year on year and 18% month on month, and delivered a record high. Geely Automobile brought new smart electric product technology from Galaxy, Lynk & Krypton to the 2024 EVA Frankfurt Electric Vehicle Fair. Delivery of the right-hand drive version of the Geekrypton 009 is expected to begin in Thailand in October this year.

Steadily launch new models and continue to improve technical strength: In September, the Linker Z10, Linker Z9 four-wheel drive sports version, and Extreme Krypton 7X were newly launched. The Lynk & Co Z10 is a C-class luxury sedan with a length of over 5 meters. It has five versions: 602km rear-wheel drive Pro, 766km rear-wheel drive MAX, 806km rear-wheel drive smart driving MAX, and 702km four-wheel drive smart driving ultra. The Extreme Krypton 7X offers three models: the rear-wheel drive smart driving version, and the long-range four-wheel drive smart driving version. The price starts at 229,900 yuan, and the maximum battery life can reach 780 km. It is equipped with a full-stack 800V high-pressure system, a wheelbase of 2,925 mm, and is also equipped with the world's first 2000MPa ultra-long integrated thermal expansion steel column to protect safety.