机构：交银国际

评级：买入

目标价：35.00港元

May sales volume beat: Geely reported robust May sales volume after market close on 6 May. May sales volume rose 61% YoY/fell 4% MoM to 123,068 units. As May is traditionally a low month, the MoM drop was in line with expectations. Nevertheless, the 61% YoY growth was much better than market expectation. YTD sales volume rose 44% YoY to 638,181 units and accounted for 40% of its full-year target of 1.58m units. Most of the key models (Boyue, Emgrand GS/GL and Vision SUV) continued to deliver strong volume in May. The sales volume of Lynk & Co 01 remained largely flat at 9k units.  

Borui GE officially launched in May, a big step in NEV development: Geely officially launched Borui GE at an MSRP of RMB136.7k-199.8k in May. Borui GE comes with eight different models will PHEV and MHEV versions. This is a major step for Geely in NEV market. Meanwhile, Lynk & Co 02 is also available for sale in June. We expect these new models to continue to fuel its sales volume in the coming months.      

Maintain Buy: We maintain our Buy rating with TP of HK$35.00. We believe the success of Lynk & Co and Geely brand’s new models will be key factors for re-rating. Key risks include lower-than-expected sales volume growth of new models and intensified competition in the SUV market, which may drag earnings.