Morgan Stanley: Quoting GEELY AUTO (00175), overseas sales growth and profit margin increase are core strategies, expecting overseas profit per vehicle in the first quarter to reach approximately 13,000 to 15,000 RMB.

Morgan Stanley released a research report stating that GEELY AUTO (00175) management attended the investor conference hosted by the bank. The company reiterated its overseas sales target for 2026 to be 640,000 units, with approximately 300,000 units being fuel vehicles. 180,000 units have been completed in the first quarter of this year, showing good progress. The company mentioned that overseas capacity expansion will prioritize the use of existing factories to avoid large-scale new investments. Management also set a target to reduce the average cost per vehicle by about 7,000 to 8,000 RMB to offset the pressure of rising memory and raw material prices. The company maintained good pricing discipline in the first quarter, significantly increasing per vehicle profit. The profit per vehicle in overseas markets may reach 13,000 to 15,000 RMB, about three times that of the domestic market. The bank maintains an "overweight" rating for GEELY and a target price of 25 Hong Kong dollars. The bank pointed out that GEELY's overseas sales growth and profit margin expansion remain long-term core strategies. Cost inflation is controllable, and there was no price war in the first quarter of 2026, which is conducive to maintaining profitability. In 2026, the group will see intensive progress in product and technology layout. The Galaxy and Lynk & Co brands will launch new models rapidly, introducing several major new cars throughout the year. On April 13th, the group will officially launch iHEV technology and apply it first to the five main models, surpassing global fuel efficiency standards and simultaneously incorporating a new autonomous driving solution.