Key Takeaways:
CLSA raised its price target for Geely Automobile (00175.HK) by over 30 percent to HKD30 from HKD23, citing accelerating profitability and an export business that is far outpacing expectations. The brokerage maintained its "Outperform" rating on the stock.
"The development of its export business has significantly exceeded targets and is expected to become another major growth driver," CLSA said in a research report. The firm estimates exports could contribute about 20 percent of the group's net profit by 2026.
The upgrade is supported by the growing success of Geely's premium brands, with both Zeekr and Lynk & Co having "gradually achieved profitability." CLSA also noted that technological upgrades and new models have driven the company's Galaxy series to new sales highs. The broker forecasts Geely's total sales will reach 3.4 million units in 2026, including 800,000 export units, with per-vehicle profit rising to approximately RMB5,800.
The bullish forecast suggests a significant re-evaluation of Geely's earnings power, driven by higher-margin premium models and a rapidly expanding international footprint. The HKD30 target implies significant upside from the stock's recent trading levels.
The new price target from CLSA highlights the market's growing confidence in Geely's multi-brand and global strategy. Investors will now watch the company's upcoming sales reports to see if the strong momentum in its Zeekr, Galaxy, and export segments can be sustained.
This article is for informational purposes only and does not constitute investment advice.
