BUY
Last Traded Price (7 Jul 2021): HK$24.05 (HSI : 27,961)
Price Target 12-mth: HK$30.00 (25% upside)
Analyst
Rachel MIU +852 36684191 rachel_miu@dbs.com

Stepping on the electric paddle

Investment Thesis
New acquisitions to speed up electrification strategy. Geely is speeding up its EV business development under the highend brand Zeekr, following multiple acquisitions worth over RMB 1.6bn. We expect doubling of the percentage of
contribution from NEV sales to c.10% in 1-2 years, as the company is committed to raise the vehicle electrification rate.


Total EV solution is possible. Zeekr is to have upstream (power trains and battery system), assembly, EV charging, and auto finance to support its business operations. This should enable Zeekr to jump start new EV model
development, production, and sales more quickly.


Expect sales to accelerate in 2H21. We expect vehicle sales to improve in 2H21 compared to 1H21 on better auto chip supply.