Guolian Securities issued a research report stating that under the Geely Auto (00175) umbrella, the zeekr brand will accelerate the pace of new car launches starting in 2023, successively releasing zeekr 009/zeekr X/zeekr 007. Sales volume increased from 0.072 million vehicles in 2022 to 0.119 million vehicles in 2023, a year-on-year growth of 65.0%. In 2024, zeekr is expected to release zeekr 7X and zeekr MIX, positioning them as B-class SUV and B-class MPV respectively. Zeekr 7X is priced at 0.2299-0.2699 million yuan, with competitive advantages over similar level competitors such as ModelY and BYD Tang. In 2025, new cars will include hunting, C/D-class SUVs, with a relatively large number, and may expand energy forms to include plug-in hybrid markets. Zeekr is expected to achieve sales volumes of 0.217/0.445 million vehicles in 2024/2025, respectively, representing growth of 82.8%/105.1%.

The bank further pointed out that in August and October 2024, Galaxy E5 and Xingyuan will be listed, positioning themselves in the A-class SUV and A0-class sedan markets respectively, with prices ranging from 0.1098-0.1458 million yuan and 0.0698-0.0988 million yuan to broaden the brand's price range. Galaxy E5, relying on product strength, achieved sales of 12,230 vehicles in the first month of listing. Xingyuan also has explosive potential in terms of product strength and is expected to lead the sales in niche markets. The bank expects to launch Star 7 by the end of 2024, positioned in the B-class SUV hybrid market, further complementing the model matrix and driving brand sales growth. Galaxy is expected to achieve sales volume of 0.296/0.76 million vehicles in 2024/2025, representing growth of 254.3%/156.9%.

The bank stated that benefiting from a favorable new car cycle, Geely Auto is expected to see a dual increase in sales volume and market share. The bank forecasts the company's total sales volume (including zeekr and Lynk & Co) from 2024 to 2026 to be 2.143/2.782/3.28 million vehicles, with revenues of 239.03/325.52/395.69 billion yuan, year-on-year growth rates of 32.9%/36.2%/21.6%, and net income attributable to the parent company of 16.41/12.74/16.47 billion yuan, year-on-year growth rates of 209.1%/-22.4%/29.3%. Corresponding EPS are 1.63/1.26/1.64 yuan/share, with a 3-year CAGR of 45.8%. Given the company's obvious growth and product cycle advantages, a "buy" rating is recommended.