Key Takeaways:
Geely Auto (0175.HK) management said overseas profit per vehicle may reach as high as RMB 15,000, about three times its domestic market returns, as the company accelerates its global expansion.
Overseas sales growth and margin expansion remain Geely Auto’s long-term core strategy, Morgan Stanley said in a report after the company’s management attended its China investor conference. The bank maintained its Overweight rating on the stock with a price target of HKD 25.
The company reiterated its 2026 overseas sales target of 640,000 units, with 180,000 vehicles already sold in the first quarter, showing solid progress. Management is also targeting an average cost reduction of RMB 7,000 to RMB 8,000 per vehicle to offset rising material prices, while maintaining strong pricing discipline.
Geely’s Hong Kong-listed shares rose nearly 6.5 percent on the news, closing the half-day session at HKD 23.4. The company plans to officially launch its new iHEV hybrid technology on April 13, which will first be applied to five core models, including the Galaxy and Lynk & Co brands.
The aggressive overseas push and focus on higher-margin vehicles signal Geely's strategy to compete with rivals like BYD on a global scale. Investors will be watching the April 13 technology launch for details on fuel efficiency and performance, which are critical for gaining market share outside of China.
This article is for informational purposes only and does not constitute investment advice.
