EB SECURITIES maintains a "buy" rating on GEELY AUTO (00175) and is optimistic about the prospects of sales volume and performance realization.

EB Securities released a research report stating that it maintains a "buy" rating for GEELY AUTO (00175) and has raised the target price to HK$26.01. The company's Q3 2025 revenue increased by 26.5% year-on-year, total sales volume increased significantly, and the core net profit attributable to the mother achieved strong growth of 59%. New car models such as the Galaxy series have performed well, and the privatization of extreme Kirin is progressing smoothly, while the global layout is accelerating. The main points of EB Securities are as follows: Q3 2025 performance exceeded expectations In the first three quarters of 2025, Geely's total revenue increased by 26.5% year-on-year to 239.48 billion yuan, the gross profit margin increased by 0.3 percentage points to 16.5%, and the core net profit attributable to the mother increased by 59% to 10.62 billion yuan. Among them, in Q3 2025, the company's total revenue increased by 26.1% year-on-year to 89.19 billion yuan, with a gross profit margin of 16.6%. The net profit attributable to the mother increased by 57.6% to 3.82 billion yuan. New car models continue to improve, market share continues to rise, and integration benefits continue to manifest In the first three quarters of 2025, Geely's total sales volume increased by 45.7% year-on-year to 2.17 million vehicles, with new energy vehicle sales accounting for 53.8%. In Q3 2025, Geely's total sales volume increased by 42.5% year-on-year to 761,000 vehicles, with new energy vehicle sales accounting for 58.2%. The integration of benefits is continually evident. The privatization of Extreme Kirin is progressing smoothly, and global expansion is accelerating Management indicated that there are no longer any obstacles to the delisting of Extreme Kirin and the merger with Geely AUTO and it is expected to be completed by the end of 2025. The company's global expansion is accelerating and it is expected to achieve volume and profit growth. Profit forecast Expecting the company's car cycle to turn positive and the continued integration benefits, the target price has been raised, and the "buy" rating has been maintained. Risk Warning New car sales may not meet expectations, and the privatization process of Extreme Kirin may not meet expectations.