The Zhitong Finance App learned that Dongwu Securities released a research report stating that maintaining the “buy” rating of Geely Auto (00175), the revenue forecast for 2024-2026 is 2135/2581/30.1 billion yuan, +19%/+21%/+16% year over year; net profit to mother is 79/115/13.8 billion yuan, respectively, +49%/+45%/+21%; corresponding EPS is 0.79/1.14/1.37 yuan, respectively. The company sold 12,725 vehicles in April, +24.94% month-on-month; the Extreme Krypton brand sold 16,089 vehicles, +98.61%/+23.65% month-on-month; the Lynk & Co brand sold 18,727 vehicles, +98.61%/+23.65% month-on-month.

The main views of Dongwu Securities are as follows:

Sales of various brands increased year-on-year, global overseas expansion accelerated, and Galaxy+ Extreme Krypton increased steadily.

1) Sales volume: The company's wholesale sales volume in April was 153,267 vehicles, +34.87%/+1.61% year-on-year, a significant increase over the previous year.

2) Fuel type: The company sold a total of 51,428 new energy vehicles in April, +72.15%/+14.82% month-on-month. The penetration rate of new energy products was 34%, and +7.25/+3.86pct compared to the same period last month.

3) Brand: Geely sold 118,451 vehicles in April, +34.76%/+0.25%, of which Galaxy sold 12,725 units, +24.94% month-on-month; Linker sold 18,727 units in April, +98.61%/+23.65%; Extreme Krypton sold 16089 vehicles in April, +98.61%/+23.65% month-on-month.

4) Overseas: The company exported 38,151 vehicles in April, +66.29%/+4.80% year-on-year increase. Globalization continued to advance. Exports accounted for 24.89% of the Group's sales volume, +4.70/+0.76pct.

A number of core technologies were released at the Beijing Auto Show, and future sales can be expected when new models are unveiled.

1) In terms of new cars, pre-sale of the Panda Kart has started, with a pre-sale price of 48,900 yuan. Various models such as the Galaxy E5, Galaxy L9, Extreme Krypton 009 Brilliant Edition, and Extreme Krypton MIX appeared at the Beijing Auto Show, focusing on new energy, covering all categories of prices from less than 50,000 yuan to more than 500,000 yuan. Among them, Galaxy E5/L9 are positioned in mainstream market segments, and explosions can be expected.

2) On the technical side, Geely announced a number of new technologies such as the latest “hardware, system, ecology, and AI” four-in-one intelligent architecture, Geely AI digital chassis, Geely 11-in-1 smart electric drive, and new AI interactive technology, covering multiple dimensions such as vehicle chassis, intelligence, and electrification, and implementing the concept of technology-enabled products.

3) In terms of price, the Geely 5.1 carnival purchase subsidy has been increased. On top of the government subsidy of 7,000 to 10,000 yuan, the maximum trade-in subsidy can reach 29,000 yuan for various models, actively compete with the industry and maintain an increase in market share.

Risk warning: The recovery in downstream demand for passenger cars fell short of expectations; the price war exceeded expectations.