China Merchants Securities International: Geely Automobile's New Products Boost Single-Firm Profits in Second Half, Maintaining Target Price of HK$32

China Merchants Securities International has released a research report stating that Geely Automobile (00175) will see an increase in single-firm profits in the second half due to the expansion of its best-selling models and high-margin vehicles, leading to a significant rebound in single-firm profits. At the same time, the outlook for exports is also optimistic. The target price remains unchanged at HK$32 and the "buy" rating is maintained, making Geely Automobile our top pick.

In addition, the company expects that after the reduction of new energy vehicle purchase tax policies next year, the price gap between oil-powered vehicles and electric vehicles will widen, leading to a short-term disturbance in demand for mid-range new energy vehicles. However, Geely Automobile's China Star series of oil-powered vehicles is highly competitive and may absorb some of the potential customers who are sensitive to prices.