CITIC published a report stating that Geely Automobiles (00175.HK) has seen strong growth in New Energy and export sales, exceeding last year's sales target. According to the company's announcement, this year's sales target is 2.71 million vehicles, an increase of 25% year-on-year. The sales targets for the Geely brand, Lynk & Co brand, and ZEEKR brand are set at 2 million, 0.39 million, and 0.32 million respectively, representing increases of 20%, 37%, and 45% year-on-year. The New Energy sales target is 1.5 million, an increase of 69% year-on-year, with the company expecting that Galaxy sales will be around 900,000 to 1 million vehicles, likely doubling the growth rate year-on-year.

The company indicated that as the scale effects of Electric Vehicles are gradually released and GEA cost advantages manifest, it believes Electric Vehicle models are likely to gradually achieve profitability. Coupled with the decline in share-based payment costs this year and stable export profitability, it is anticipated that Geely Automobile's profit this year is likely to show profit elasticity.

The company noted that due to the increased certainty of profitability in the New Energy Sector, it has raised Geely Automobile's net profit forecasts for 2024 and 2025 by 3.6% and 20.8% to 16.6 billion yuan and 13.3 billion yuan respectively. The current stock price corresponds to a PE of 7.8 times and 10 times for 2024 and 2025. It maintains a rating of 'Outperforming the Industry' and a Target Price of 18.6 yuan.