CMB International Securities: Raised Geely Automobile (00175.HK) target price to HK$27.5, maintaining "buy" rating.

According to the Zhichuan Finance and Economics APP, Zhongshan Securities International released a research report stating that considering Geely Automobiles (00175.HK) entering a period of sustained strong growth, it is giving it a valuation of 17.6 times the price-earnings ratio by 2025, with a 10% premium over historical average valuation. At the same time, it is raising profit forecasts by 7-8% and the target price to 18.5%, from 23.2 Hong Kong dollars to 27.5 Hong Kong dollars, maintaining a "buy" rating. The bank believes that the privatization of Zikr not only reduces costs and increases efficiency, but also focuses resources on Hong Kong-listed companies. This further benefits Geely Automobile's various brands in terms of technology sharing, channel coordination, and product line complementarity, reducing overall operating costs. The bank has raised the group's net profit forecast for 2025-2027, expecting a net profit CAGR of 36% during this period.