＜Research＞HTSC: GEELY AUTO (00175.HK) Operation Efficiency Higher, Exports Expand Briskly

　　HTSC issued a report on GEELY AUTO (00175.HK) -0.310 (-3.527%) Short selling $76.23M; Ratio 21.213% , which recorded revenue of RMB52.3 billion in 1Q, up 56% YoY, and net profit of RMB1.6 billion, up 119% YoY. In view of that the company's many new models are about to be delivered to the market, while the company is accelerating the expansion of overseas markets, it has opened stores and built sales networks in many regions of ASEAN, the Middle East, and Western Europe. The broker was optimistic that the company's export sales and overall revenue will maintain brisk growth in 2H24.

　　HTSC pointed out that GEELYs GPM in 1Q was 13.7%, down 0.5 ppts YoY. The decline in GPM was mainly attributable to escalated competition in the industry and increased discounts. The broker expected that the company's mid-to-high-end models under the ZEEKR (ZK.US) and Lynk & Co brands will gradually be put into mass production, improving the product structure. This, coupled with mass production of the export models, the GPM was expected to elevate.

　　Related NewsUOB Kay Hian, KGI Asias Top Picks for H Shares

　　HTSC forecast GEELYs net profit attributable to the parent company to be RMB6.3 billion/ 8.2 billion/ 8.9 billion from 2024 to 2026, respectively. Considering the company's active export layout and the expected return to profitability of its high-end brands this year, the broker assigned the company a target price of HK$14.27, up from HK$13.66, with a Buy rating.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-02 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

　　AAStocks Financial News