GEELY AUTO (00175) continues to demonstrate strong momentum in its new energy brands, with accelerating profitability. Revenue for 2025-2027 is projected at RMB 404.78 billion, RMB 489.69 billion, and RMB 572.83 billion, respectively, while net profit attributable to shareholders is estimated at RMB 16.21 billion, RMB 22.09 billion, and RMB 25.97 billion (excluding potential ZEEKR privatization). Earnings per share (EPS) are forecasted at RMB 1.61, RMB 2.19, and RMB 2.58 (excluding buyback impact), translating to a P/E ratio of 10x, 7x, and 6x based on the closing price of HKD 17.77 on November 3. The "Recommend" rating is upheld.

In October, the company's wholesale sales reached 307,000 units, up 35.5% year-on-year and 12.5% month-on-month. Export sales stood at 42,000 units, rising 2.2% sequentially, showcasing robust performance. On October 30, GEELY GALAXY launched its new hybrid sedan, the Xingyao 6, with a limited-time guide price ranging from RMB 68,800 to RMB 99,800. The model features the next-generation Thor AI Hybrid 2.0 system, front-row heated and ventilated electric seats, the Galaxy Flyme Auto smart cockpit, and the Qianli Haohan H3 ADAS system.

The company's sales growth is expected to materialize steadily, supported by economies of scale that enhance profitability. On October 6, GEELY AUTO announced a share buyback plan of up to HKD 2.3 billion, pending approval from the Hong Kong Stock Exchange. The buyback will be executed in batches via an automated mechanism using existing capital and cash reserves, signaling strong confidence in long-term prospects. The initiative aims to optimize capital structure, boost EPS, and better reflect the company's valuation.

Recently, ZEEKR Technology and GEELY AUTO submitted a Form CB to the U.S. SEC, with the "major merger" expected to conclude by year-end. The move aligns with the "One Geely" strategy, which is anticipated to enhance operational efficiency and cost savings.