Lyon: Geely Auto (00175) target price of HK$23, expected price reduction and ADAS function enhancement to enhance competitiveness.

Lyon releases a research report, giving GEELY AUTO (00175) a target price of HK$23. GEELY AUTO has released the "Vast Sky" advanced safety intelligent driving system, which will be equipped in all new and revamped models of Geely Galaxy in the future, including the revamped Galaxy E8 model launched at the press conference. Due to hardware limitations, existing Galaxy models need to be revamped in order to add the ADAS function, and cannot be updated directly through OTA. In order to attract consumers, Geely has implemented a price reduction of 3,000 to 6,000 RMB on existing Galaxy models, and the new E8 model, in addition to the ADAS upgrade, also has a price reduction of 15,000 to 30,000 RMB compared to previous versions. With the continuous introduction of new and revamped models, Lyon believes that Geely will further enhance its competitiveness in the mass electric vehicle market with its price advantage and ADAS function.