BOCOM Maintains ‘Buy’ Rating on Geely, Lifts EPS Outlook for 2026–2027

BOCOM International has reiterated a “buy” rating on Geely Automobile and set a target price of HK$24.21, while raising its earnings per share (EPS) forecasts for 2026 and 2027 by 8.8% and 16.4%, respectively.

The brokerage said the upgrade reflects Geely’s strong improvement in sales and gross margins in 2025, as well as its overseas expansion plans for 2026 and the still-unrealized benefits from internal integration.

According to its financial results, Geely’s revenue reached RMB 345.232 billion ($50.02 billion) in 2025, up 25% year-on-year, while net profit attributable to shareholders rose to RMB 14.41 billion ($2.09 billion), an increase of 36%.

The fourth quarter stood out, with gross margin rising to 16.9%, above the full-year level of 16.6%.

Higher volumes of premium models under the Zeekr brand, particularly the Zeekr 9X, provided a notable boost to profitability.

In the fourth quarter, Zeekr’s gross margin reached 23%, up from 19.2% in the third quarter.

Sales also continued to grow. Geely delivered 3.025 million vehicles in 2025, up 39% year-on-year, including 420,000 units sold overseas, with new energy vehicle exports exceeding 120,000 units.

Based on this momentum, Geely has set a 2026 sales target of 3.45 million units, representing a 14% increase, and internally aims to become the top-selling brand in the domestic market.

On integration, the company is advancing the consolidation of Lynk & Co and Zeekr, including unified back-end operations and synergies in procurement and manufacturing.

However, these benefits have yet to be fully reflected in financial results. BOCOM expects efficiency gains to gradually materialize in 2026.

Geely CEO Gan Jiayue said the company will prioritize overseas markets this year.

Under its plan, Geely will expand the availability of models such as the Galaxy E5 and Starship 7 in global markets, while leveraging Volvo’s resources to accelerate the rollout of Lynk & Co models including the 08, 01, and Z20 in Europe.

The company has set a 2026 overseas sales target of 640,000 units, up 52% year-on-year, and plans to establish more than 1,300 overseas retail outlets.