Jefferies: Maintaining Geely Auto's (00175) “Buy” Rating Target Price of HK$32.8 AI Smart Charging Day Narrows Shortfall Gap

The Zhitong Finance App learned that Jefferies released a research report stating that it maintains Geely Auto (00175)'s “buy” rating, with a target price of HK$32.8. Geely Automobile held an AI Smart Charging Technology Day in Hangzhou. The company's tandem battery, charging and infrastructure strategy. Key information includes 2.2 MW chargers, 12C/6C battery roadmap, integrated thermal management and full life cycle management plans, and the 2027 charging network target to reach 22,000 stations and 100,000 charging guns. The bank believes that the challenge has moved from technology to implementation, particularly the supply of power modules, access to sites and power grids.

The bank pointed out that Geely's 2.25 megawatt single-gun charger is the fastest in the industry and provides a platform for upcoming 12C models; Aegis Gold Brick (12C) establishes an aura ahead of high-end Krypton and Lynk & Co models, while the 6C ultra-short blade targets mainstream models such as the E5.

Currently, Geely operates more than 2,500 stations and 12,000 charging guns, covering 232 cities. The 2027 target means that the network will expand about 9 times and advance using an asset-light model. Management said that the cost of a megawatt charger is about 150,000 yuan per gun. Compared with the industry's benchmark of 240,000 to 400,000 yuan, the more important cost savings come from component integration rather than the use of low-spec hardware.

The bank believes that with the penetration rate of pure electric vehicles exceeding 40%, the charging experience is replacing battery life as the next competitive battleground. This release essentially narrows down one of Geely's remaining product shortcomings; if implemented, the impact should be reflected in the share of pure electric vehicles at the group level rather than a single star model.