Zhongtong Finance and Economics APP learned that China Merchants Securities released a research report stating that it maintains a 'buy' rating for Geely Auto (00175), raising the annual net profit forecast for each year from this year to 2026 by 3%, 15%, and 17% respectively, to reflect the breakthrough in mixed products. It is expected that the compound annual net profit growth rate from 2023 to 2026 will reach 42%, pointing out that the market currently underestimates Geely's growth potential in new energy vehicles. The target price has been raised from 18.6 Hong Kong dollars to 21.8 Hong Kong dollars.

The report states that Geely's wholesale sales volume in October increased by 28% year-on-year to 0.227 million units, hitting a new high. The wholesale sales volume for the first 10 months of this year reached 1.716 million units, an increase of 31.5% year-on-year. The Galaxy series saw a year-on-year increase of 83.3% in wholesale sales volume this month to 0.063 million units, while the new model Xingyuan had delivered over 10,000 units in the first 16 days of its launch. The sales of the internal combustion engine vehicles in the China Star series increased by 13.9% year-on-year, with sales volumes of internal combustion engine and new energy vehicles showing growth at the same time. In addition, the company's exports totaled 0.347 million units in the first ten months of this year, a year-on-year increase of 61.9%. The bank believes that it remains optimistic about the company's internal integration, believing that it will bring benefits from cost reduction and efficiency improvement.