The analyst rating for GEELY AUTO is reiterated at "Buy" due to several factors highlighted in the BOCI research report. The company recorded a year-on-year increase in wholesale units, outperforming the industry average, which is attributed to deferred wholesale volumes and strong export growth. The broker expects good revenue growth in 4Q25 driven by sales, despite a potential decline in profits due to higher year-end expense provisions and recall provisions for certain models. Looking ahead to 2026, BOCI believes that GEELY AUTO can manage cost pressures effectively, with a target of over 10% annual cost reduction, which should help maintain profitability despite rising raw material costs. However, the target price was lowered to $30, reflecting the equity dilution from Zeekr's privatization, while still maintaining a favorable valuation compared to peers.
