Jefferies has issued a research report maintaining its Buy rating on Geely Auto (00175) with a target price of HK$32.8.

Geely Auto held an AI smart charging technology day in Hangzhou, where the company linked its battery, charging, and infrastructure strategies. Key takeaways include a 2.2-megawatt charger, a 12C/6C battery roadmap, integrated thermal management and full lifecycle management solutions, as well as a target of 22,000 charging stations and 100,000 charging guns by 2027.

The bank believes the challenge has shifted from technology to execution, particularly regarding power module supply, available sites, and grid access.

The bank notes that Geely's 2.25-megawatt single-gun charger is the fastest in the industry, providing a platform for upcoming 12C models. The Shen Dun Golden Brick (12C) is positioned ahead of premium Zeekr and Lynk & Co models to build a halo effect, while the 6C ultra-short blade battery targets mainstream models such as the E5.

Geely currently operates over 2,500 stations and 12,000 charging guns, covering 232 cities. The 2027 target implies roughly a ninefold expansion of the network, pursued through an asset-light model.

Management stated that the cost of megawatt-level chargers is approximately RMB 150,000 per gun, compared to industry benchmarks of RMB 240,000 to RMB 400,000. More importantly, cost savings come from component integration rather than adopting lower-spec hardware.

The bank believes that as pure electric vehicle penetration exceeds 40%, charging experience is replacing range as the next competitive battleground. This launch effectively narrows one of Geely's remaining product shortcomings. If executed well, the impact should be reflected in the group's pure electric vehicle share rather than in any single star model.