Zeekr reports first quarter earnings: revenues reach $2.04 billion, vehicle margin 14%

Scenario Claudio Afonso | Linkedin | X

Electric vehicle maker Zeekr announced its first-quarter 2024 financial results on Tuesday, showing total revenue of $2.04 billion (RMB 14,736.8 million). The company will host an earnings conference call later today to provide further updates and answer analyst questions.

The Geely Group brand recorded a gross margin of 11.8 percent, up from 7.9 percent. a year earlier, but lower than 14.2 percent. achieved in the last quarter of 2023.

The electric vehicle maker delivered 18,616 vehicles in May, a 115 percent year-on-year increase and a new monthly record.

A 117 percent increase in vehicle deliveries in the quarter to 33,059 units led to a 71 percent year-over-year increase in total revenue to RMB 14.7 billion ($2.04 billion). Vehicle sales alone generated RMB 8.17 billion ($1.13 billion), reflecting an increase of 73%. Gross profit recorded a remarkable increase of 154.9 percent, reaching RMB 1.74 billion ($240.9 million).

Despite these strong performance metrics, Zeekr reported a net loss of RMB 2.02 billion ($280.1 million), which management attributed to continued investment in research and development, market expansion and business scaling.

Commenting on the results, CEO Andy An stated: “Our first quarter results demonstrate the strength of our brand and the growing demand for our electric vehicles. We are committed to innovation and are confident in our ability to continue to provide high-quality products that meet the needs of our customers.

Cash and cash equivalents and restricted cash at the end of the first quarter amounted to RMB 3,791.1 million (USD 525.1 million).

Last week, Deutsche Bank analyst Bin Wang initiated a Buy rating on Zeekr shares, setting a price target of $35. Based on the share price, the price target suggested upside potential of 46 percent at the time of the note.

Earlier this week, Zeekr said the first batch of right-hand drive units in the Zeekr X have rolled off the production line, with first deliveries expected this summer.

Also, Bank of America (BofA) analyst Ming Hsun Lee initiated a Buy rating and $35 price target on Zeekr. Additionally, Goldman Sachs has also started monitoring the stock, giving it a Buy rating and a $34 price target.

Last year, Zeekr delivered 118,685 electric vehicles, up 64.98 percent year-on-year, and this year it aims to double its production to 230,000 units.

Scenario Claudio Afonso | Linkedin | X

NEVER MISS AN UPDATE