Geely's sales performance in May was impressive. In May, Geely sold a total of 167,700 units, up 38.5% year on year and 4.8% month on month; of these, sales of new energy vehicles were 58,700 units, up 145.9% year on year, up 14.1% month on month; exports were 36,900 units, up 67.8% year on year. According to the Passenger Federation data, domestic passenger car wholesale sales fell by about 5% year on year and 16% month on month from May 1 to 26. The overall sales growth rate of Geely Automobile is expected to be much better than the industry average.
The Krypton brand grew steadily over the same period and was listed on the NASDAQ. In May, the Geely brand sold 120,300 units, up 29.5% year on year; from January to May, cumulative sales volume was 620,300 units, up 38.9% year on year. Among them, Geely Galaxy sold 14,400 units in May, up 11.5% month on month, achieving positive month-on-month growth for three consecutive months. Geely China Star Premium Series sold 30,700 units in May, with cumulative sales exceeding 1 million units. In May, the Jikrypton brand sold 18,600 units, up 114.5% year on year, up 15.7% month on month, and delivery volume reached a new high; cumulative sales volume in January-May was 67,800 units, up 111.7% year on year. Delivery of the new Krypton 001 exceeded 10,000 for 2 consecutive months, and continued to rank first among Chinese pure electric brands with more than 200,000 units in 2024. On May 10, Extreme Krypton was successfully listed on the New York Stock Exchange at an issue price of $21/ADS (each ADS represents 10 shares), raising a total of US$441 million. Of this, 45% will be used to develop more advanced pure electric vehicle technology and rich product matrices, 45% will be used for marketing and expanding service and charging networks, and 10% will be used to supplement working capital to support the company's business growth. On May 24, Extreme Krypton's four-seat ultra-luxury flagship, Extreme Krypton 009, began delivery at the Extreme Krypton 5G smart factory; on May 29, Extreme Krypton 001 and Extreme Krypton X obtained Euro NCAP and Green NCAP “safety” and “environmental protection” double five-star certifications. As of May 2024, over 260,000 Krypton vehicles have been delivered, and 392 stores have been opened worldwide.
The Lynk & Co brand continues to grow rapidly, and the overseas product matrix is expanding at an accelerated pace. In May, the Linker brand sold 21,800 units, up 50.3% year on year and 16.3% month on month; cumulative sales volume in January-May was 101,600 units, up 54.7% year on year. In May, the Linker brand accounted for about 57% of new energy sales, a record high. On May 17, the Linker 07 EM-P was officially launched. A total of 3 models were launched. The price range was 1698-189,800 yuan, and the limited-time premium price was 1638-183,800 yuan. The new car is equipped with the Antora 1000 Rro computing platform and the LYNK Flyme Auto smart cockpit system, and the vehicle's occupancy rate reached 71%. As of May 25, the Lynk & Co 07 EM-P had delivered 1,000 vehicles. In terms of overseas travel, the new Preface debuted overseas in Saudi Arabia in May, speeding up the deployment of the Middle East market; the three star SUV models Starray, Okavango, and GX3 Pro were launched in Mexico on May 13.
EPS is predicted to be $0.75, 0.94, and 1.18 respectively in 2024-2026. The comparable companies are A and H share automakers, maintaining 14 times the comparable company's average PE valuation in 24 years, with target prices of RMB 10.50 and HK$11.54 (1 HKD = RMB 0.9102), maintaining the purchase rating.
Risk warning
There is a risk that the sales volume of Geely, Lynk & Krypton brands falls short of expectations, and that cost control falls short of expectations.