King's Financial News | Soochow Securities issued a research report, Geely Autos (00175) disclosed the third quarter report for 2024, with a quarterly revenue of 60.378 billion yuan, up by +20.5%/+9.8% respectively compared to the previous quarter; net income of 2.455 billion yuan, up by +92.4%/-72.8% respectively. After excluding non-recurring gains and losses, the net income attributable to shareholders is 2.76 billion yuan, in line with market expectations. Based on conservative financial estimates, Geely took a one-time provision of 0.598 billion yuan for impairment in 2024Q3, and the company expects no further impairment for Geely in the future.

The bank pointed out that the company achieved a total sales volume of 0.534 million units in Q3, up by +18.7%/+11.3% respectively compared to the previous quarter, including non-consolidated Lynk brand sales of 0.0696 million units, up by +20.5%/+7.2% respectively. Excluding Lynk brand, the average price per vehicle in Q3 24 for Geely + Zeekr (including approximate costs of parts and technology licensing fees) was 0.13 million yuan, up by +1.8%/-1.9% respectively. Geely's Q3 revenue was 18.36 billion yuan, up by +31.9%/-8.3% respectively, with Q3 sales volume of Zeekr at 0.055 million units, up by +51.1%/+0.4% respectively.

The bank further mentioned that due to the favorable feedback on the new Galaxy model, the bank raised the company's net income attributable to parent company for 2024-2026 to 16.8/13.6/16 billion yuan (previously 15.1/11.5/13.8 billion yuan), corresponding to PE ratios of 8/9/8 times, maintaining a 'buy' rating on Geely Autos.