Jefferies: Maintains "Buy" rating on GEELY AUTO (00175), target price HK$32.8; AI smart charging day narrows the gap in weak areas

Jefferies released a research report maintaining a "Buy" rating on GEELY AUTO (00175) with a target price of HK$32.8. GEELY AUTO held an AI smart charging technology day in Hangzhou, where the company linked its battery, charging, and infrastructure strategies. Key takeaways include 2.2 MW chargers, a 12C/6C battery roadmap, integrated thermal management and full lifecycle management solutions, and a target of 22,000 stations and 100,000 charging guns by 2027. The bank believes the challenge has shifted from technology to execution, particularly power module supply, available sites, and grid access. The bank noted that Geely's 2.25 MW single-gun charger is the fastest in the industry, providing a platform for upcoming 12C models; the ShenDun Golden Brick (12C) leads in establishing a halo ahead of premium Zeekr and Lynk & Co models, while the 6C ultra-short blade targets mainstream models such as the E5. Geely currently operates over 2,500 stations and 12,000 charging guns, covering 232 cities. The 2027 target implies roughly a 9x network expansion, pursued through an asset-light model. Management stated that megawatt-level chargers cost approximately RMB 150,000 per gun, compared to peer benchmarks of RMB 240,000 to 400,000, with more significant cost savings coming from component integration rather than adopting lower-spec hardware. The bank believes that as BEV penetration exceeds 40%, charging experience is replacing range as the next competitive battleground. This launch effectively narrows one of Geely's remaining product shortcomings; if executed well, the impact should be reflected in the group's BEV share rather than a single star model.