China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

Equity Bottom-Up

<ul>
<li>The combined Zeekr (ZK)/Lynk reported C1Q25 top line 11% below our estimates, due to sharper than expected price erosions, </li>
<li>Despite ASP missing our estimates by 6.3% for ZK and 16% for Lynk, ZK managed to beat our gross margin estimate by 3.7ppt and consensus by 4.0ppt, </li>
<li>With Geely and related persons controlling 78% of ZK and Geely's H-share stock rising in value, we see the chance for the go-private deal to succeed as high. </li>
</ul>


The combined Zeekr (ZK)/Lynk reported C1Q25 top line 11% below our estimates, due to sharper than expected price erosions, 
Despite ASP missing our estimates by 6.3% for ZK and 16% for Lynk, ZK managed to beat our gross margin estimate by 3.7ppt and consensus by 4.0ppt, 
With Geely and related persons controlling 78% of ZK and Geely's H-share stock rising in value, we see the chance for the go-private deal to succeed as high. 


[Zeekr Group (ZK US, 買い、目標株価 US$35) 目標株価変更]: Geelyへの買収はどちらの企業の競争力にも役立たない

ZEEKR

[Zeekr Group (ZK US, 買い、目標株価 US$35) 目標株価変更]: Geelyへの買収はどちらの企業の競争力にも役立たない