Key points of the announcement: Geely sold 160,658 vehicles in May, +33.82%/+4.82% YoY.
By brand, the Geely brand sold 120,264 units, +29.55%/+1.53% YoY, of which Galaxy sold 14,193 units, +11.54% month-on-month; the Extreme Krypton brand sold 18,616 units, +114.52%/+15.71% YoY; and the Lynk & Co brand sold 21,778 vehicles, +50.31%/+16.29% YoY.
Sales of all brands increased same/month on month, export sales increased year on year, and Galaxy + Extreme Krypton increased steadily.
1) Classification of fuel types: The company sold a total of 58,673 new energy vehicles in May, +117.02%/+14.09%, the penetration rate of new energy products was 34%, +14.00/+2.97pct, and both increased month-on-month. The transformation of Galaxy + Kyokrypton + Lynk & Ke multi-brand new energy was improving, the strategic positioning was clear, and the terminal brand influence increased steadily. 3) Brand differentiation: Lynk & Co., Ltd. and Krypton brands performed well; the Geely brand sold 120,264 units in May, +29.55%/+1.53% month-on-month, of which Galaxy sold 14,193 units, +11.54% month-on-month, and the Lynk & Co brand sold 21,778 units in May, +50.31%/+16.29% compared to the same period; the Geely Krypton brand sold 18,616 vehicles in May, +114.52%/+15.71% year-on-month. 4) Overseas: The company exported 36,890 vehicles in May, +61.35%/-3.31% year over year, high year-on-year increase. Globalization continued to advance. Exports accounted for 24.89% of the Group's sales volume, +3.92/-1.93pct.
The domestic model matrix for the exhibition was gradually improved, and breakthroughs were concentrated overseas, and future sales can be expected. 1) On the domestic side, Geely Galaxy+ Lynk & Co has formed a complete product matrix covering sedan/SUV models with a price of 100,000 to 300,000 yuan. The Lynk & Co 07/08em-p model forms a superelectric binary star, and sales are growing rapidly. In terms of new cars, the new Boyue L, based on Geely's CMA architecture, was officially launched on May 20, with a guide price of 115,700 yuan to 149,700 yuan. It is equipped with a Qualcomm 8155 cockpit chip and a new-generation advanced intelligent driving assistance system. It supports functions such as highspeed/elevated NOA point-to-point assisted driving and RPA remote parking assistance/APA automatic parking assist. Geely decentralized smart driving technology to a market segment below 200,000 yuan. The new models have obvious competitive advantages. 2) In overseas markets, Geely has a rich product matrix to meet the needs of differentiated market segments. The new Preface was unveiled in Saudi Arabia. Three new SUV models were launched in the Mexican market. The overseas product matrix was expanded at an accelerated pace, making every breakthrough, and high sales growth can be expected.
Profit forecast and investment rating: We maintain the company's 2024-2026 revenue forecast of 2135/2581/300.1 billion yuan, respectively, +19%/+21%/+16% year over year, and net profit to mother of 79/115/13.8 billion yuan, respectively, +49%/+45%/+21% year over year; corresponding EPS for 2024-2026 is 0.79/1.14/1.37 yuan, corresponding PE is 11/8/7 times, maintaining the company's “buy” rating.
Risk warning: The recovery in downstream demand for passenger cars fell short of expectations; the price war exceeded expectations.