According to a report by HSBC Research, Geely (00175.HK) reported third-quarter earnings that met expectations, and the restructuring of its shareholding structure helps improve synergistic effects, while an accelerated product cycle supports strong sales growth. The bank has raised Geely's target price from HK$10.9 to HK$19.3, maintaining a 'buy' rating, and has adjusted the company's earnings forecasts for this year to 2026 by 21%, 41%, and 28% respectively.

The bank indicated that Geely's earlier announcement regarding the restructuring of zeekr (ZR.US) and Lynk & Co. is expected to help streamline redundant resources, strengthen synergies among different channels, product combinations, supply chains, and production capacities. The bank anticipates that due to the accelerated product cycle and better synergies among various brands or models after the restructuring, the company can maintain sales momentum, targeting a sales growth of 22% to 2.6 million vehicles next year. (vc/u)

~