Written by Cláudio Afonso | LinkedIn | X
Electric vehicle manufacturer Zeekr announced on Tuesday its financial results for the first quarter of 2024 reporting total revenues were of $2.04 billion (RMB 14,736.8 million). Later today, the company will hold an earnings conference call to provide further updates and answer questions from the analysts.
The brand from the Geely Group reported a gross margin of 11.8 percent, up from the 7.9 percent a year ago but lower than the 14.2 percent achieved in the last quarter of 2023.
The electric vehicle maker delivered 18,616 vehicles in May, representing an increase of 115 percent year over year and a new monthly record.
The 117 percent increase in vehicle deliveries during the quarter to 33,059 units allowed the total revenue to climb 71 percent year-over-year to RMB 14.7 billion ($2.04 billion). Vehicle sales alone contributed RMB 8.17 billion ($1.13 billion), reflecting a 73 percent increase. Gross profit saw a remarkable 154.9 percent jump, reaching RMB 1.74 billion ($240.9 million).
Despite these strong performance indicators, Zeekr reported a net loss of RMB 2.02 billion ($280.1 million) with the management attributing it to ongoing investments in research and development, market expansion, and scaling of operations.
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 delivering high-quality products that meet the needs of our customers.”
Cash and cash equivalents and restricted cash was RMB 3,791.1 million ($525.1 million) as of the end of the first quarter.
Last week, Deutsche Bank analyst Bin Wang initiated coverage of Zeekr’s stock with a Buy rating while setting a $35 price target. Based on the price of the stock, the price target implied an upside potential of 46 percent as of the time of the released note.
Earlier in the week, Zeekr said the first batch of Right Hand Drive units of the Zeekr X rolled off the production line with first deliveries expected for this summer.
Also Bank of America (BofA) analyst Ming Hsun Lee has initiated coverage of Zeekr with a Buy rating and a price target of $35. In addition, Goldman Sachs also started covering the stock, assigning a Buy rating and a price target of $34.
Last year, Zeekr delivered 118,685 electric vehicles, up 64.98 percent year-on-year, and aims to double its output to 230,000 units this year.
Written by Cláudio Afonso | LinkedIn | X
