Geely Auto (HKEX: 00175) shares rose more than 3% in trading. At the time of writing, the stock was up 3.23% to HK$18.51, with a turnover of HK$358 million.

The company reported robust export figures for June, with overseas shipments reaching 102,874 units. This represents a year-on-year increase of 157% and a month-on-month rise of 21%. For the first half of the year, cumulative export sales totaled 474,228 vehicles, surging 158% compared to the same period last year and already surpassing the full-year export target set for 2025.

Furthermore, sales of its premium Zeekr brand remained strong. Zeekr delivered 35,000 vehicles in June, marking a significant year-on-year growth of 110.6%.

Morgan Stanley expressed a positive outlook, stating that Geely Auto is benefiting from a favorable product mix focused on premium models and international markets. The firm anticipates this will underpin profit growth for the second quarter.

China Merchants Securities International provided analysis on the broader automotive sector, suggesting a moderate recovery in domestic demand is expected in the second half of the year. The firm forecasts a shift from the current dynamic of "weak domestic demand, strong exports" to one of "stable domestic demand, strong exports" by 2027. It noted that pessimistic expectations regarding demand being pulled forward have already been priced in, presenting what it views as the best strategic entry point in a two-year timeframe.

Regarding automakers, the brokerage names Geely Auto as its top pick. It highlighted recent developments, including the company's production capacity cooperation with Volvo and Ford in Europe, viewing this as a critical step towards localized manufacturing on the continent.