UBS Group expects that Geely Auto (00175) releasing its Q1 financial report will be a short-term catalyst for its stock price revaluation.
According to the report released by UBS, Geely Auto (00175) is rated as "buy", and it is expected that the group's Q1 financial report will be a short-term catalyst for its stock price revaluation, with a target price of HKD 13.
The report stated that the company will release its quarterly profit for the first time this month. Due to the improvement of Geely's operating leverage, the improvement of product structure, and the acceleration of export sales, the bank expects that the net income of the group's first fiscal quarter will be RMB 1.477 billion, and it believes that investors may not have fully calculated the impact of the 49% year-on-year increase in sales volume.
The bank stated that excluding Zeekr, the net profit per vehicle in the first quarter of the group is expected to be RMB 5,000, which is 16% higher than the first half of last year.