Huatai International: Geely Automobile's profit elasticity released, maintaining "outperforming the market" rating.

Haitong International released a research report stating that Geely Automobile is expected to achieve operating income of 345.23 billion yuan by 2025, with a 25% annual increase, reaching a historical high. The annual sales volume is expected to reach 3.025 million vehicles, with a 39% annual increase, exceeding the target of 3 million vehicles, and the market share will rise to 10.05%. The sales volume of new energy vehicles is increasing rapidly, with Geely continuing to be the main force in the mainstream market, driving the growth of the group's scale and new energy penetration rate simultaneously. By the end of 2025, the company's total cash level is expected to rise to 68.2 billion yuan, with a 46% annual increase, and net cash of 49.9 billion yuan, further enhancing the company's financial strength to support future new product launches, globalization expansion, and investment in intelligence. The bank predicts that Geely Automobile's car deliveries will be 3.49 million, 4 million, and 4.58 million units in 2026, 2027, and 2028 respectively, with new energy penetration rates reaching 64%, 71%, and 77% respectively. The bank forecasted that the company's earnings per share will be 1.88, 2.31, and 2.62 yuan respectively. Comparing with the valuation of comparable companies in the same industry, the bank gives the company a 13 times price-earnings ratio in 2026, which is at the historical average valuation level of the company. The corresponding fair target price is 27.8 Hong Kong dollars, and the bank maintains an "outperform the market" rating.