Citi: Maintain Geely (0175. HK) Buy rating with a target price of HK$52.77

Citi said in a report that it held an investor meeting with Yuan Jing, chief financial officer of Zeekr, a brand of Geely (0175.HK), and JiJi Kr shipped 70,000 cars this year, with a target of 65 cars by 2025, and pointed out that at least 2 new models are planned in the short term, indicating that the shipment volume is growing rapidly, but due to many factors, the index will not meet the group's internal targets.

When asked by Geely's Krypton management about the reasons for the stagnation in sales and delivery growth, management pointed to the bottleneck in chip supply, and the limited supply of replacement chips became the more important reason, another reason was that deliveries had only just started about nine weeks ago. Based on the current level of resources, the management of Extreme Krypton is expected to be unable to achieve the monthly production and sales target of 7,000 to 8,000 units in March this year

Extreme Kr management expects pneumatic suspension supply to ease from the second quarter of 2022 onwards, and as for the impact of higher battery costs, management confirms that the expected impact of higher battery costs may be raised from 10% to 30% in the range.

Citi maintains its "Buy" investment rating and target price of HK$52.77 for Geely.