On November 18, JP Morgan issued a report indicating that Geely Automobile (00175.HK) had outperformed expectations in its third-quarter earnings. The company’s core net profit was 4% higher than JP Morgan’s forecast, and its net profit per vehicle surged by 15% quarter-on-quarter, reaching RMB 5,200. The report emphasized that Geely Automobile’s strong third-quarter performance was primarily propelled by economies of scale, an optimized product mix, and increased contributions from exports. JP Morgan posits that the appreciation in Geely Automobile’s share price this year is more closely tied to enhanced profitability rather than an expansion in valuation multiples. During the earnings call, Geely’s management underscored their strategies for next year, which include new vehicle launches, advancements in autonomous driving technology, and export initiatives—all of which received JP Morgan’s endorsement. The bank projects that Geely Automobile will exhibit stronger growth momentum in the fourth quarter of this year and into next year, and as a result, it maintains an Overweight rating with a target price of HK$24.