Citigroup: Gives GEELY AUTO (00175) a "Buy" rating with a target price of 30 Hong Kong dollars.

Citigroup released a research report saying that they give Geely Auto (00175) a "buy" rating with a target price of 30 Hong Kong dollars. They believe that the launch of new car models will drive a moderate increase in the second quarter depreciation and amortization expenses, with annual depreciation expenses estimated to be 5 billion yuan, or about 1.3 billion yuan per quarter. After meeting with Geely Auto management, the bank expects the company's second-quarter net profit, excluding exchange rate impacts, to reach between 5 billion and 5.5 billion yuan. Assuming an export volume of 245,000 vehicles in the second quarter, with a profit of 12,000 yuan per vehicle, and a domestic sales volume of 506,000 vehicles, with a profit of 4,200 yuan per vehicle, they believe that the lower limit of the 5 billion yuan profit forecast can be reached; if domestic sales volume increases to 510,000 vehicles, with a profit of 5,000 yuan per vehicle, then the upper limit of the 5.5 billion yuan profit forecast can be reached.