Morgan Stanley's report stated that, with regard to the acquisition trade between Lynk & Co and zeekr (ZK.US), Geely (00175.HK) management reiterated that Lynk & Co's valuation is reasonable and transparent, and Geely does not need cash for the trade, and the merger of Lynk & Co and zeekr can eliminate product overlap between the brands, avoiding sales erosion. Management also mentioned that Geely recently saw Chairman Li Shufu increase holdings by 24.2 million shares in his personal name, involving 0.316 billion yuan, demonstrating confidence in the trade value.

In addition, the bank believes that Geely is expected to surpass the sales target of 2 million vehicles in the fiscal year 2024, and achieve 0.38 million exports, expecting a larger scale. The company expects to enter a virtuous cycle, higher sales volumes will help reduce marketing expenses and supplier costs, further driving business growth.

The bank maintains its financial estimates for Geely, believing that the market still undervalues the potential promotional impact of the company's mid-term electric vehicle strategy, maintaining its 'outperform market' rating with a target price of 18 yuan.