BofA Securities: ZEEKR Acquisition Boosts GEELY AUTO (00175), HK$21.6 Target Maintains "Buy" Rating

Stock News
2025/07/16

BofA Securities research indicates GEELY AUTO's (00175) full acquisition of ZEEKR and LYNK & CO brands delivers strategic advantages. Consolidating R&D resources across automotive design, smart cabin systems, and driver-assist technologies enhances innovation capabilities. Multi-brand marketing efficiencies and synergistic effects are expected, while simplified equity structures improve corporate governance.

The "Buy" rating stands with a HK$21.6 target price, reflecting confidence in GEELY's steady sales trajectory and growth momentum from new vehicle model cycles.

GEELY AUTO recently announced acquiring all outstanding ordinary shares and ADS of ZEEKR (ZK.US). Shareholders may elect cash compensation or equivalent GEELY shares, with conversion rates set at $2.687 per ordinary share and $26.87 per ADS. This represents a 4.7% premium over May's offer of $2.566 per ordinary share and $25.66 per ADS.

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