1、 EQUITIES AUTOMOTIVE GEELY AUTOMOBILE HOLDINGS LTD OUTPERFORM PRICE*HKD19.0 TARGET PRICE HKD27(UPSIDE 42%)A comeback giant to gain ground in NEV 18 AUGUST 2025 Securities Research Report Production time:09:50(London time)Research Analysts&Publishing EntitiesResearch Analysts&Publishing Entities A co

2、meback giant poised to take share in the NEV market Famously known in China for its acquisition of Volvo,Geely became the best-selling domestic brand in 2017 with a series of product launches based on Volvos R&D,until it was overtaken by BYD(-)in 2022.Geely operates through a multi-brand strategy.As

3、 competition intensifies in the Chinese auto market,Geely announced its target to reduce conflicts of interest and duplicate investments to improve the groups operational efficiency by consolidating its brands and product lines.Market share improvement to continue with the launch of competitive NEVs

4、 Geely has seen sales volume growth momentum from 2024 year-end with the launch of NEVs powered by its cheaper PHEV solution and its latest-developed NEV platform.As more products are coming on the platform,we expect sales volume of Geely ex.Zeekr to grow at 22%CAGR during 2024-27,reaching 3.0m unit

5、s in 2027E.Zeekr and Lynk&Co to unlock cost synergies and contribute to Geelys earnings from 2025 The loss from Zeekr and Lynk&Co equals to 20%of Geelys normalised net profit in 2024.While we expect the combined sales volume to grow at a 7%CAGR during 2024-27,driven by expansion of NEV product offer

6、ings,we believe the cost synergy will unlock profitability,with Zeekr and Lynk&Co consolidated turning profitable in 2025 under the HKFRS accounting standard.Initiate with a TP of HKD27 and an Outperform rating Based on our expectation of a comeback from Geely,with higher NEV sales volume,particular