According to research reports from sealand securities, Geely Auto (00175) achieved total operating revenue of 107.305 billion yuan in the first half of 2024, a year-on-year increase of 46.63%; achieved net income attributable to shareholders of 10.598 billion yuan, a year-on-year increase of 574.60%; achieved total sales volume of 0.9557 million vehicles, a year-on-year increase of 40.98%.
The bank continues to state that the company's overseas sales volume in the second quarter of 2024 was 0.1104 million vehicles, a month-on-month increase of +67.81% and a quarter-on-quarter increase of +26.82%; Overseas sales accounted for 23%, with a month-on-month increase of +4.71 percentage points and a quarter-on-quarter increase of +4.70 percentage points. As of June 30, 2024, the Geely brand has established 653 sales and service outlets in 76 countries around the world, with more than 120 new sales and service outlets added in the first half of the year. Benefiting from the expansion of the company's overseas sales channels and the improvement of product matrix, the company has achieved a high-quality market share overseas. Among them, Coolray has won the top three sales of Chinese brands in seven countries including Saudi Arabia, the United Arab Emirates, Kazakhstan, Kuwait, Qatar, and Panama; Monjaro has won the top three sales of Chinese brands in five countries including Saudi Arabia, the United Arab Emirates, and Qatar. With the launch of multiple new products from the silver and Lynk brands, the company's overseas sales volume is expected to further increase.
The bank believes that the company's brand is moving towards the high-end, and the sales volume of its models is steadily increasing, and the profitability under the scale advantage is further recovering. The company's strategic layout is comprehensive. While maintaining steady growth in domestic business, it is accelerating the development of overseas markets, which is expected to bring additional profit contributions. It is estimated that the company's operating revenue in 2024-2026 will be 189.2 billion yuan, 219.9 billion yuan, and 221.5 billion yuan, with year-on-year growth rates of 6%, 16%, and 1%, respectively; The net income attributable to shareholders is 16.432 billion yuan, 11.842 billion yuan, and 15.386 billion yuan (the 2024 forecast value is significantly increased due to the increase in non-operating project revenue in the first half of 2024), with year-on-year growth rates of 210%, -28%, and 30% respectively; EPS is 1.63 yuan, 1.18 yuan, and 1.53 yuan, corresponding to PE valuations of 5 times, 6 times, and 5 times the current stock price. With the continuous introduction of the company's new energy products and the steady increase in sales of high-end brands, the bank is bullish on the company's future development and maintains a "shareholding" rating.