Geely Automobile Holdings: Cost Efficiency and Brand Integration Drive Buy Rating with Upward Target Price Adjustment

Analyst Ji Shi of CMB International Securities maintained a Buy rating on Geely Automobile Holdings (GELYF – Research Report), boosting the price target to HK$24.00.

Ji Shi’s rating is based on Geely Automobile Holdings’ impressive cost control and the potential for further synergies from the integration of its brands, such as Zeekr and Lynk & Co. The company’s first-quarter net profit for 2025 met expectations, while its selling, general, and administrative expenses were significantly lower than anticipated, indicating effective cost management. This efficiency is expected to improve further as the integration progresses, leading to substantial savings in procurement, SG&A, and R&D expenses.
Additionally, Geely’s retail sales volume has shown a robust year-over-year increase, and the company has revised its sales volume and net profit forecasts upwards for the fiscal years 2025 and 2026. The anticipated privatization of Zeekr, which would increase Geely’s stake, is also expected to contribute to profit growth. These factors, combined with a favorable valuation compared to peers like BYD, support Ji Shi’s decision to maintain a Buy rating and slightly raise the target price.

Shi covers the Consumer Cyclical sector, focusing on stocks such as Geely Automobile Holdings, Nio, and China Yongda Automobiles Services. According to TipRanks, Shi has an average return of 12.1% and a 53.85% success rate on recommended stocks.

In another report released on May 16, Bernstein also maintained a Buy rating on the stock with a HK$21.00 price target.