BofA Securities affirmed a positive outlook on Geely Auto's (00175.HK) move to fully acquire electric vehicle subsidiary Zeekr (ZK.US) and consolidate ownership of Lynk & Co. The investment bank highlighted significant operational advantages, including streamlined R&D resource allocation across automotive design, smart cockpit technologies, and advanced driver-assistance systems.

The consolidation enables more efficient multi-brand marketing strategies with enhanced synergies, while simplified equity structures promise improved management efficacy. BofA reiterated its "Buy" rating with a HK$21.60 target price, citing Geely's resilient sales performance and growth momentum from new model launches.

Geely recently announced plans to purchase all outstanding ordinary shares and American Depositary Shares (ADS) of Zeekr. Shareholders may elect to receive cash or equivalent Geely shares, with conversion terms set at $2.687 per ordinary share and $26.87 per ADS. This represents a 4.7% premium over the automaker's May offer of $2.566 per share and $25.66 per ADS.