CICC Securities International: Expects Geely Auto to stabilize and rise in the fourth quarter, maintains target price of 32 Hong Kong dollars.

CMB International Securities released a research report stating that despite fierce industry competition, Geely Automobile's single-vehicle profit in the third quarter rebounded. It is expected to stabilize and rise in the fourth quarter, with an increase in sales volume of high-end products next year and accelerated overseas expansion, supporting the company's performance growth. Geely remains the top pick in the whole vehicle sector of the bank, maintaining a target price of HK$32 and an "overweight" investment rating, with the current valuation being attractive. The short-term stock price catalyst to watch is the implementation of the share buyback plan. The report states that the net profit of the group in the third quarter was 38.2 billion yuan, a year-on-year increase of 57.6%, and a quarterly increase of 5.6%, in line with the bank's expectations, higher than the market consensus of about 14.3% at 33.4 billion yuan.