Geely Automobile 0175

[behappyalways]

China's Geely posts 18 percent profit jump, predicts flat 2019 sales

The company said that the deterioration of consumer confidence in China, the world's biggest auto market, caused by increased political and economic uncertainties had affected demand, but that its sales had only missed its own annual target by 5 percent.

Its sales volumes started to particularly slow in the last quarter of 2018, with a 44 percent drop in December alone, according to monthly sales data filings.

Source: Yahoo Finance

https://finance.yahoo.com/news/chinas-g ... 53412.html

[winston]

not vested

Geely Automobile (175 HK) - Guidance trimmed

As one of China’s leading auto-manufacturers, Geely differentiates itself through the successful development and launch of its own lower-priced models.

Despite intense competition, Geely has seen steady domestic retail market share gains over the past decade to ~6.5%, with sales of more than 1.3 mn cars in 2019.

Given the highly competitive, cyclical and capital intensive characteristics of the global auto manufacturing industry, we are selective within the sector.

Within the China auto space however, we favour Geely for its stronger financial health and solid pipeline of new products.

While the demand recovery for automobiles in China could remain modest weighed by macro uncertainties, a gradual recovery trend should continue to unfold in 2H20 following the industry’s heavy de-stocking in 2019 and as the economy normalizes.

The impending merger with Volvo should solidify its global presence and reap R&D and cost benefits over the medium term. HOLD.

Source: OCBC

[winston]

not vested

GEELY AUTO(175)

Analysis：

Geely Automobile Holdings (175) reported the total sales volume of the Group (including the sales volume of LYNK & CO-branded vehicles sold by the Group`s 50%-owned joint venture) for the month of August 2020 was 113,443 units, an increase of 12% from the same period last year and up 8% from July 2020.

Of the total sales volume in August 2020, the Group`s exports volume was up around 97% year-on-year to 6,322 units.

The total sales volume of LYNK & CO-branded vehicles was 17.098 units, up around 56% year-on-year and achieving the brand`s record high monthly sales volume. (I do not hold the above stock)

Strategy：
Buy-in Price: $16.20, Target Price: $18.60, Cut Loss Price: $15.20

Source: Phillips

[winston]

not vested

GEELY AUTO(175)

Analysis：

Geely Auto (175) announced that the total sales volume of the Group (including the sales volume of LYNK & CO-branded vehicles sold by the Group`s 50%-owned joint venture) for the month of September 2020 was 126,365 units, an increase of approximately 11% from the same period last year and up approximately 11% from August 2020.

The Group`s exports volume was up more than twofold year-on-year to 8,068 units in the month of September 2020.

The total sales volume of LYNK & CO-branded vehicles was 18,745 units, up around 38% year-on-year and achieving the brand`s record high monthly sal es volume. (I do not hold the above stock)

Strategy：
Buy-in Price: $16.00, Target Price: $17.80, Cut Loss Price: $14.90

Source: Phillips

[winston]

not vested

Geely Automobile (175 HK) - More upbeat outlook

As one of China’s leading auto-manufacturers, Geely differentiates itself through the successful development and launch of its own lower-priced models.

Despite intense competition, Geely has seen steady domestic retail market share gains over the past decade to ~6.5%, with sales of more than 1.3 mn cars in 2019.

Given the highly competitive, cyclical and capital-intensive characteristics of the global auto manufacturing industry, we are selective within the sector.

Within the China auto space however, we favour Geely for its stronger financial health and solid pipeline of new products, which includes new energy and electrified vehicles.

While the demand recovery for automobiles in China could remain modest weighed by macro uncertainties, a gradual recovery trend should continue be sustained as the economy normalizes further.

The impending merger with Volvo should solidify its global presence and reap R&D and cost benefits over the medium term. BUY.

Source: OCBC

[winston]

not vested

Daiwa Ramps up GEELY AUTO (00175.HK) TP to $35; 2021E Sales May Grow 25%

GEELY AUTO (00175.HK) posted sales volume of 1.17 million units in 11M20 and 150,000 units particularly in November.

Daiwa expected the carmaker to unroll 4-5 new models this year, with a 25% YoY sales growth to 1.68 million units.

GEELY AUTO was restated at Buy, with target lifted from $22.3 to $35.

Source: AAStocks Financial News

[winston]

not vested

Geely Automobile (175 HK) - Recovery gathers momentum

As one of China’s leading auto-manufacturers, Geely differentiates itself through the successful development and launch of its own lower-priced models.

Despite intense competition, Geely has seen steady domestic retail market share gains over the past decade to ~6.5%, with sales of more than 1.3 mn cars in 2019.

Given the highly competitive, cyclical and capital-intensive characteristics of the global auto manufacturing industry, we are selective within the sector.

Within the China auto space, we favour Geely for its stronger financial health and solid pipeline of new products, which includes new energy and electrified vehicles.

The Chinese government’s 14th Five-year plan includes a target to raise NEV sales penetration to 20% by 2025 (from 2020E’s ~5-6% level) which implies stronger growth prospects and more intense competition ahead.

Amongst the traditional auto manufacturers, Geely is expected to be one of the key runners in the race, which should help to offset potential future decline in internal combustion engine (ICE) sales.

The impending merger with Volvo should solidify its global presence and reap R&D and cost benefits over the medium term. BUY.

Source: OCBC

[winston]

not vested

Geely Automobile (175 HK) - New collaboration with Volvo

As one of China’s leading auto-manufacturers, Geely differentiates itself through the successful development and launch of its own lower-priced models.

Despite intense competition, Geely has seen steady domestic retail market share gains over the past decade to ~6.5%.

Given the highly competitive, cyclical and capital-intensive characteristics of the global auto manufacturing industry, we are selective within the sector.

Within the China auto space, we favour Geely for its stronger financial health, strategic collaborations and solid pipeline of new products, which includes new energy and electrified vehicles.

The Chinese government’s 14th Five-year plan includes a target to raise NEV sales penetration to 20% by 2025 (from 2020E’s ~5-6% level) which implies stronger growth prospects and more intense competition ahead.

Amongst the traditional auto manufacturers, Geely is expected to be one of the key runners in the race, which should help to offset potential future decline in internal combustion engine (ICE) sales.

The expanded collaboration with Volvo Cars (unlisted) should solidify its global presence and reap R&D and cost benefits over the medium term. BUY.

Source: OCBC

[winston]

not vested

Geely Auto slides 7pc as profit falls

by Victor Zhong

Geely Auto's (0175) net profit decreased by 32 percent year-on-year to 5.53 billion yuan (HK$6.60 billion).

Its share price fell nearly 7 percent to HK$22.55 yesterday.

It declared a final dividend of HK$0.2 per share, compared to earnings per share of HK$0.56 each.

The company announced it was setting up a joint venture with its parent company, Geely Group, to engage in electric mobility-related products such as intelligent electric vehicles under the brand Zeeker and the provision of service in the mainland through an indirect wholly foreign-owned enterprise.

Zeeker plans to deliver electric vehicles to the market in the fourth quarter, said the brand's chief executive, An Conghui, who also works as executive director at Geely Auto and is president of Geely Holding.

Geely Auto has set its annual sales target for this year at 1.53 million units, an increase of nearly 16 percent over last year's total sales.

An said the increase in sales target lies in the expectation that demand for passenger vehicles in the domestic market will recover this year.

Though the chip shortage is taking a toll on the global market, An said it does not have a major impact on the group.

Source: The Standard

https://www.thestandard.com.hk/section- ... ofit-falls

[winston]

Geely Auto (175 HK)
2H20: Profit Plummeted 43% yoy; Missing Estimates; Downgrade to HOLD

Geely’s 2H20 results were disappointing with net profit down 23% yoy, but up 41% hoh
to Rmb3,237m, 34-35% below our and consensus estimates.

The 2H20 earnings miss came from worse-than-expected margins despite a sales recovery.

We cut our 2021-22 EPS estimates by 22% and 18% respectively.

Downgrade from BUY to HOLD. Cut the target price from HK$36.00 to HK$22.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 70881e8370