HK Stock Market Move | GEELY AUTO (00175) up more than 4%, third-quarter sales increased by 32.1% year-on-year. The company expects export performance to continue to grow.

GEELY AUTO (00175) rose more than 4%, reaching 4.4% at the time of publication, at HK$13.76, with a turnover of HK$684 million. On the news front, recently, GEELY AUTO stated during the 2024 third quarter performance conference call that the company has shown strong performance in the third quarter of 2024, with a cumulative sales volume of 1.49 million vehicles, a year-on-year increase of 32.1%, with significant growth in new energy vehicle sales. Total revenue reached 44.4 billion yuan, a year-on-year increase of 6.6%, net profit was 2.57 billion yuan, a year-on-year increase of 92%. The total gross profit reached 9.4 billion yuan, a year-on-year increase of 21.6%, with a gross profit margin of 15.6%. The company actively integrates resources, improves research and development and operational efficiency, and expects the full-year performance to exceed expectations. In terms of overseas market layout, both Geely and Lynk & Co brands have new models launching, with export performance expected to continue to grow. EB SECURITIES released a research report stating that the company's gross profit margin in the first three quarters of 2024 increased by +0.5pcts year-on-year to 15.3%, with a 0.1pcts increase in the third quarter of 2024 to 15.6%. The company's SG&A expense ratio in the first three quarters of 2024 decreased by -1.3pcts year-on-year to 11.6%, with a -2.3pcts year-on-year / -2.1pcts quarter-on-quarter decrease to 10.3% in the third quarter of 2024. The reasons for the improvement in profitability include, a) the company's resource integration achieving cost reduction and efficiency improvement; b) Jidui achieving profitability for the first time in a single quarter, with a profit of 152 yuan per vehicle in the third quarter of 2024. Looking ahead, the company's emphasis on resource integration + platform strategy is expected to contribute to greater profit elasticity.