Lyon: Raise GEELY AUTO (00175) target price to HK$30, export business significantly ahead of target.

Lyon released a research report predicting that GEELY AUTO (00175) will achieve a total sales volume of 3.4 million vehicles this year, with 800,000 vehicles being exported. The profit per vehicle is expected to be around 5,800 RMB, decreasing to 4,500 RMB by 2025. Due to the upward revision of the forecast, the target price of the company has been significantly raised from 23 Hong Kong dollars to 30 Hong Kong dollars, maintaining a "outperform" rating. GEELY AUTO's subsidiaries, Lynk & Co and Polestar, have gradually become profitable. Technological upgrades and the launch of new models continue to drive record high sales for the Geely lineup, while the high-end Polestar models are also gaining momentum. In addition, GEELY AUTO's export business is developing significantly ahead of target and is expected to become another major growth driver. The company estimates that the export business could contribute around 20% of the group's overall net profit by 2026.