Geely Automobile's electrification transformation has accelerated in an all-round way, and the stock price has continued to rise, which is optimistic about the institutions

Since late June, Geely Auto's share price has continued to rise, with an increase of more than 28%, leading the Hong Kong stock market.At the same time, a number of securities institutions have raised their earnings forecasts for Geely Auto and gave them a "buy" rating, optimistic about the company's long-term development.

From the perspective of research institutions and investors, Geely has been able to lead the rise in auto stocks, on the one hand, it relies on its profound heritage as a leader in local car companies, and more importantly, it is the opening of a new round of new energy product cycles and the outstanding performance it has achieved. , laying a solid foundation for the company's "profit and sales to fly together".

Since the beginning of this year, Geely Automobile Group has accelerated its transformation to electrification in an all-round way, and new energy products have been launched one after another. , Emgrand L Raytheon Hi·X super electric hybrid orders exceeded 30,000, Ji Krypton 001 was launched in 217 days and delivered 20,000 units... According to data, in May 2022, Geely Automobile's new energy sales volume was 19,619, a month-on-month increase of 39% and a year-on-year increase 304%, and the new energy penetration rate reached a new high of 22%.Geely Auto's series of layouts around electrification have now begun to feed back the consumer market and form a technical moat, accumulating sufficient potential for long-term upward growth in the future.

Thor Hybrid leads the market

At a time when gasoline prices are high and pure electric vehicles have not yet shaken off the anxiety of energy supplementation, hybrid or plug-in hybrid vehicles have gradually become the first choice for some consumers to buy a car.Ping An Securities predicts that the sales volume of hybrid vehicles is expected to reach 10 million units in 2025, with a compound annual growth rate of over 70%, and there is huge room for alternatives to traditional fuel vehicles.

Facing market opportunities, in October 2021, Geely Automobile Group officially released the power technology brand - Raytheon Power and the world-class modular intelligent hybrid platform - Raytheon Hi X.The Raytheon Hi-X hybrid system can cover different levels of models, as well as various power forms such as HEV gasoline-electric hybrid, PHEV plug-in hybrid and REEV extended-range hybrid. The six major hybrid core technologies such as fuel saving rate and FOTA upgrade in the full power field have achieved the lead for friends and businessmen, changing the previous situation of Japanese "domination" in the hybrid field.

Relying on the Raytheon Hi-X hybrid platform, as well as leading technologies such as the 1.5TD/2.0TD hybrid special engine and the 3-speed hybrid electric drive DHT Pro, 2022 will become the year of Geely's Thor hybrid.According to the plan, Geely Auto will launch 8 models of Raytheon Hi·X gasoline-electric hybrid and super electric hybrid products in the hybrid market this year.

Based on the Raytheon Hi·X Hybrid Electric (HEV) technology launched by the Geely brand, the Xingyue L Thor Hi·X Hybrid Edition was launched on March 30.The new car is equipped with a DHE15 hybrid engine with a maximum output of 150 horsepower and a peak torque of 225 Nm. The transmission is matched with the world's first 3-speed electric drive gearbox (DHT Pro).The strong product performance makes the Xingyue L Thor Hi·X Hybrid Edition available, and the orders are hot, and the supply is in short supply.According to the data, the sales of this model in May accounted for 32.6% of the sales of Xingyue L.After the 100-unit delivery ceremony was held in Guangzhou on June 25, the Xingyue L Thor Hi·X Hybrid Hybrid will be delivered successively in East China, South China, North China, Central China, and Northwest China.

Based on the Raytheon Hi·X super electric hybrid (large-mileage PHEV) technology, the Emgrand L Thor Hi·X super electric hybrid was released on April 26.The new car has also won the unanimous approval and favor of market users by taking into account the advantages of energy saving, performance and intelligence.Up to now, the cumulative orders for the Emgrand L Thor Hi·X super electric hybrid have exceeded 30,000; among the users who have ordered, up to 95% of the users have chosen the medium and high-end version of the car, and the orders in non-licensed cities account for 73%.On June 26, the first delivery ceremony of Geely Emgrand L Thor Hi·X super electric hybrid was held.At the ceremony, Geely announced that it will start a one-month "delivery month", with a delivery target of 10,000 units in the first month to meet the needs of users to quickly pick up their cars.

In the second half of the year, the Geely brand will also launch a "super electric hybrid" model with a cruising range of more than 200 kilometers to fully deploy the mainstream hybrid vehicle market.

Under the empowerment of the Raytheon intelligent hybrid platform, Lynk & Co released the intelligent electric hybrid Lynk E-Motive technology.According to the plan, Lynk & Co's smart electric hybrid model will take the lead in adopting the 2.0TD engine + multi-motor drive combination, and the high-performance rear-drive motor will enable Lynk & Co's unique intelligent electric four-wheel drive system, which will be applied to high-end new energy products.In addition, Lynk & Co will launch 4 products equipped with Lynk E-Motive technology this year, and will launch 3 more products in the next two years.

According to the official introduction, in the next three years, there will be more than 20 models equipped with Raytheon Hybrid, achieving the No. 1 sales volume in the mainstream hybrid market segment and the No. 1 comprehensive user experience of "performance, intelligence, and new energy".At that time, the Geely brand and Lynk & Co will make joint efforts in hybrid technology and products, and will achieve full coverage of China's mainstream hybrid market and high-end hybrid market. Diversified and cleaner travel ecology, while helping to accelerate the realization of the "carbon neutrality" goal.

The comprehensive construction of pure electric ecology

In the field of pure electric vehicles, Geely Automobile Group has “divided into two branches”, relying on the Geometry brand and the Jikr brand to tap the incremental space of China’s mainstream pure electric travel market and high-end intelligent pure electric market, forming a differentiated force and jointly competing for pure electric power. car market.

Among them, the Krypton brand has successfully opened up the "third track" of high-end smart pure electric brands in the face of competition from new forces such as Tesla and "Weixiaoli" as well as traditional forces such as BYD and GAC Aian.Backed by Geely's strong industrial ecological support, and quickly established full-stack self-research capabilities and vertical integration capabilities of the industry chain, Jikr practiced the concept of "user-centered", covering the entire life cycle of automobiles and interacting with users to create .

Sales data show that in May 2022, the Jikr brand delivered 4,330 units, a month-on-month increase of 102.6%, hitting a record high.As of May this year, the cumulative delivery of Jikr 001 has exceeded 20,000 units, and it has run out of "jikrypton speed" in the complex environment of the rebound of the epidemic and the fluctuation of the supply chain.In the next three years, Jikr will launch 6 new models in succession. By 2025, Jikr aims to achieve an annual sales volume of 650,000 units, ranking among the top three in the high-end electric vehicle market in the world.

Geometry brand focuses on the popular mainstream pure electric market, creating cost-effective products with both battery life, quality and intelligence.From January to May 2022, the cumulative sales volume of the Geometry brand reached 42,318, a significant increase of 349% year-on-year, making it one of the fastest growing brands this year; since the establishment of the Geometry brand, the cumulative number of service users has exceeded 200,000.

In addition, Geely Automobile Group has launched a new "battery swap travel brand" Ruilan Auto, focusing on the implementation of battery swap products and services.At present, Ruilan Auto has launched three models of Ruilan Maple Leaf 60S, Ruilan Maple Leaf 80V, and X3 Pro, which meet the needs of B-end customers and C-end users at the same time, radiate outward from the Chongqing market, and build battery swaps covering core cities across the country. network.

In addition to developing pure electric and hybrid markets, Geely Automobile Group has also done a lot of exploration and deep cultivation in the field of methanol vehicles. It has more than 200 core technology patents, and has operated 27,000 vehicles on a large scale in Xi'an, Jinzhong, Guiyang and other places. , with a total operating mileage of 8 billion kilometers.Recently, the first batch of mass-produced vehicles of Geely's fourth-generation Emgrand alcohol-electric hybrid sedan rolled off the production line, opening up new possibilities and technical paths for the realization of my country's "dual-carbon" strategy.

Multi-pronged approach to increase volume and price

In the face of major changes in the electrification and carbon neutrality of the automotive industry, Geely Automobile Group took the initiative to launch forward-looking strategies such as "Blue Geely Action" and "Smart Geely 2025". Different technical routes such as extended-range hybrid, pure electric, and methanol vehicles are fully developed to build a clean, green and sustainable diversified travel ecology for consumers.

Now that 2022 is almost halfway through, Geely Auto Group is "multi-pronged" in different tracks, and innovative technologies and products have been launched one after another, and the implementation of the strategy has achieved remarkable results.At the same time, Geely Auto's financial fundamentals are good. As of the end of December 2021, Geely Auto's total cash level (bank balance and cash + pledged bank deposits) is 28 billion yuan, a record high level, and there are sufficient funds to support the group to further Realize the layout and improvement of the new energy system.

According to Li Donghui, CEO of Geely Holding Group, Vice Chairman and Executive Director of Geely Automobile Holdings Co., Ltd., in 2021, Geely Automobile's direct income from technology authorization will reach 1.275 billion yuan, a year-on-year increase of 125%, becoming a new source of growth for the company.

As of 14:00 on June 28, Geely Auto's quotation was HK$18.94 per share, an increase of 1.61%.Since June 20, Geely Auto's share price has risen by about 20%, leading the rise in vehicle stocks, which fully confirms the investment market's recognition of the achievements of Geely Auto Group's electrification transformation.At the same time, securities institutions have raised the company's profit expectations and gave "buy" ratings.

Huaxi Securities believes that Geely Auto Group is ushering in a new round of product cycle. With the release of a variety of Thor hybrid models and a luxury smart pure electric MPV, the company will achieve brand premium and increase profitability.In the context of the optimization and concentration of the industry's competitive landscape driven by the electric and intelligent revolution, Geely Auto is expected to achieve a rise in both volume and price, and its market share will continue to increase.

Geely Automobile Group has always adhered to the diversified layout of energy sources and the simultaneous development of new energy and energy-saving vehicles. Now it is accelerating the process of electrification of new energy with all brands and paths.In the new era of electrification and carbon neutrality, Geely Auto Group will continue to lead China's auto industry and lead the way of energy reform by leveraging on the successive implementation of leading technologies and high-quality products.