CMB: Geely Automobile (00175.HK) exceeds expectations in quarterly performance, with a "buy" rating and a target price of HK$24.

According to the Wisdom Financial APP, J.P. Morgan released a research report stating that Geely Auto (00175.HK) has performed better than expected in the third quarter, with core net profit exceeding the bank's forecast by 4%. The net profit per vehicle increased by 15% quarter-on-quarter to 5,200 RMB. The bank said that Geely's performance in the third quarter was solid, mainly driven by economies of scale, a better product mix, and expansion in exports. The bank believes that Geely's stock price has risen so far this year, more due to profit upgrades than expansion in target multiples. At the performance meeting, management emphasized plans to launch new models next year, as well as automatic driving (AD) and export strategies. The bank welcomes this and expects stronger growth momentum in the fourth quarter of this year and next year. The bank maintains a "buy" rating with a target price of 24 Hong Kong dollars.