Macquarie: Raises target price for Geely Auto (00175) to 24 Hong Kong dollars, solid quarterly performance, maintains industry first choice.

The Macquarie research report pointed out that Geely Auto (00175) is expected to have a stable performance in the fourth quarter of 2025, with sales and net profit exceeding market expectations by 5% and 10% respectively, mainly driven by the improvement in the luxury car portfolio. The full-year sales guidance for 2026 is maintained at 3.45 million units, representing a 14% year-on-year growth. The management reiterated that the full-year overseas sales guidance for 2026 is 640,000 units, with an internal challenge target close to 750,000 units. The target price for Geely has been raised by 4.3% by the bank, from HK$23 to HK$24, equivalent to a forecasted 2026 P/E ratio of 12 times; and the outperform rating is maintained. In the Greater China region, Macquarie believes that Geely still offers the best risk-return ratio among Chinese auto stocks and maintains it as the top pick in their industry. Overall, Macquarie has adjusted their full-year net profit forecast for Geely this year by 6% to RMB 19.3 billion.