＜Research＞BOCOMI Finds GEELY AUTO (00175.HK) 1Q Results in Line, Expects Electrification to Accelerate in 2H

　　BOCOMI noted in a report that GEELY AUTO (00175.HK) -0.310 (-3.527%) Short selling $76.23M; Ratio 21.213% achieved revenue of RMB52.32 billion and net profit of RMB1.561 billion in 1Q24, hiking 56% and 119% YoY. Sales volume rose 49% YoY to 476,000 units, the strong growth was mainly due to the company's relatively low base from the new energy vehicle (NEV) transition last year.

　　The gross profit margin of 13.7% in 1Q24 was lower than the 15.9% achieved in 2H23, which the broker attributed the decline to higher NEV sales. The 1Q results were largely in line with BOCOMI's expectations, but it expected the pressure on gross margins to continue throughout the year.

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　　The report highlighted that GEELY will focus on pushing battery-electric models in 2H24, including the Galaxy E5, Lynk & Co Z10 and Zeekr Mix, which is expected to support continued sales improvement as NEV models hit the market in 2H and exports accelerate. BOCOMI maintained its Buy rating and target price of $12.5 on GEELY, based on 17.8x 2024 forecasted P/E.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-02 12:25.)

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