Citigroup: Upgrades GEELY AUTO (00175) Target Price to 27 Hong Kong Dollars Rating "Buy"

11:32 02/04/2026

Taking into account better sales mix and profit margin trends, the gross profit margin forecasts for the years 2026 to 2028 have been raised by 0.2 percentage points, while the net profit forecasts for each year have been raised by 3%, reaching 199 billion RMB, 228 billion RMB, and 260 billion RMB respectively.

Citigroup released a research report stating that Geely Auto (00175) sold 233,000 units in March, with a total sales volume of 704,000 units in the first quarter, exceeding the bank's forecast. In addition, exports in March increased by 34% compared to the previous quarter, showing strong performance, and the sales mix from the beginning of the year has also exceeded expectations. The bank stated that it has raised Geely Auto's target price from HK$26 to HK$27 and maintained its rating as "buy". Considering the better sales mix and profit margin trends, the bank has raised gross margin forecasts for 2026 to 2028 by 0.2 percentage points and net profit forecasts by 3% for each year, reaching RMB 19.9 billion, RMB 22.8 billion, and RMB 26 billion respectively.

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