Geely Automobile 0175

[winston]

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GEELY AUTO(175)

Analysis：

Geely has launched the first model 001 of its new electric vehicle brand Zeekr (极氪), which is expected to be delivered in October this year.

This model is more prominent in terms of perfo rmance or sports attributes. 100kWh battery pack, 712 kilometers endurance under NEDC, 120 kilometers endurance in five minutes, 3.8 seconds 100 kilometers acceleration, 34.5 meters 100 kilometers braking distance.

KK 001 also has a highly controlled digital chassis (top equipped with aircraft), including air Suspension, CCD electromagnetic shock absorption.

With the help of the Zeekr brand, the brand lineup of Geely Group will be expanded.

Strategy：
Buy-in Price: $23.00, Target Price: $34.00, Cut Loss Price: $17.00

Source: Phillips

[winston]

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<Blue Chip Results>GEELY AUTO 1H21 NP Up Over 3% to RMB2.38B, Meeting Low End Forecast; Nil Div

GEELY AUTO (00175.HK) released the interim results for the six months ended 30 June 2021.

The revenue hiked 22.3% yearly to RMB45.032 billion.

The net profit added 3.7% yearly to RMB2.381 billion, in line with the lower end of brokers' forecast as compiled by our reporters at RMB2.3-3.666 billion.

EPS was RMB23.60 cents.

No dividend was declared.

Gross margin ratio in the first half of 2021 was relatively stable as the impact from higher raw materials costs was largely offset by improving product mix.

The Group sold a total of 630,200 units of vehicles in the first half of 2021, up 19% YoY.

Source: AAStocks Financial News

[winston]

not vested

Geely Auto (175 HK)
1H21: Earnings Up 4% yoy, In Line With Our Estimate But Below Consensus

Geely’s 1H21 net profit grew 4% yoy but dropped 26% hoh to Rmb2,381m, in line with
our estimate but below consensus.

Once again, 1H21 earnings missed consensus estimates on worse-than-expected margins due to spikes in raw material cost, chip shortage and share-based payments.

Management remains positive on 2H21’s outlook based on a strong product pipeline. Maintain HOLD. Target price: HK$28.50.

Source: UOBKH

https://research.uobkayhian.com/content ... d1ff55fd95

[winston]

not vested

Brokers' Post-result Ratings, TPs, Views on GEELY AUTO (00175.HK) (Table)

Brokers│Ratings│TPs (HKD)
Citigroup│Buy│52.25
JPMorgan│Overweight│46
CCBI│Outperform│33.5->31.7
Everbright Securities│Buy│30.93
Nomura│Buy│30.2
BOCI│Hold│23->27
Credit Suisse│Neutral│26
UBS│Neutral│24
Daiwa│Hold│22->24
Morgan Stanley│Underweight│13

Brokers│Viewpoints
Citigroup│1H core earnings, rev beat
JPMorgan│2025 sales goal of 3.65M units very ambitious
CCBI│1H result in-line with biz consolidation underway
Everbright Securities│interim result in-line; outlook still expectable leveraging Zeekr valuation
Nomura│margin solid on 2Q mix improvement, mass production normalization
BOCI│2025 sales goal ambitious
Credit Suisse│1H result in-line; 2025 sales goal of 3.65M units catalyzing
UBS│mkt may lower earnings forecast
Daiwa│GPM rises QoQ; focuses on aggressive 2025 sales goal
Morgan Stanley│1H result growth solid

GEELY AUTO 1H21 NP Up Over 3% to RMB2.38B, Meeting Low End Forecast; Nil Div

Source: AAStocks Financial News

[winston]

vested

GEELY AUTO Sep Total Sales Vol. Down 18% YoY, 9M21 Sales Hit 60% of Full-yr Forecast

GEELY AUTO (00175.HK)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, namely LYNK & CO JV) during the month of September 2021 was 103,900 units, a decrease of approximately 18% from the same period last year, but up approximately 18% from August 2021.

The total sales volume in the first nine months of 2021 was 921,800 units, an increase of approximately 5% from the same period last year, achieving 60% of the Group’s full year sales volume target of 1.53 million units in 2021.

Source: AAStocks Financial News

[winston]

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Volvo seeks up to Sin $31b valuation in one of Europe's biggest IPOs this year

Electric-carmaker Polestar, owned by Geely and Volvo, last month said it will go public by merging with a United States-listed special purpose acquisition company backed by billionaire Alec Gores and investment bank Guggenheim Partners at an enterprise value of US$20 billion.

Source: Reuters

https://www.straitstimes.com/business/c ... ggest-ipos

[winston]

not vested

Geely Auto (175 HK)
Takeaways From Asian Gems Virtual Conference

During the Asian Gems conference, Geely expressed optimism on the business outlook
based on its strong order backlog, its full product pipeline and easing chip shortage.

Geely keeps 2021 sales target unchanged at 1.53m units (+16% yoy) and has guided for
an optimisation of its sales mix with the debut of the higher-priced “China Star” series
in mid-21.

Raise 2022-23 EPS by 9-10%.

Maintain BUY. Raise target price from HK$27.50 to HK$31.00.

source: UOBKH

https://research.uobkayhian.com/content ... 22ad0a2f69

[winston]

not vested

Geely Automobile (175 HK) - Investor day highlights

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 Chinese autos, 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. HOLD.

Source: OCBC

[winston]

not vested

Geely's Zeekr, Mobileye to Launch L4-grade Autonomous Driving Car in CN

GEELY AUTO (00175.HK)'s EV brand Zeekr announced a partnership with Intel (INTC.US) 's autonomous driving unit, Mobileye, with the aim to launch a new self-driving vehicle in China by 2024.

The two companies expressed that, the innovative vehicle model will be equipped with L4-grade autonomous driving technology, and will be capable to independently handle most traffic situations.

Source: AAStocks Financial News

[winston]

not vested

GEELY AUTO Teams up with Waymo to Build EVs

GEELY AUTO (00175.HK) expressed that its luxury EV brand Zeekr will collaborate with Waymo, an autonomous driving technology company under Alphabet (GOOGL.US) , to produce electric vehicles.

The new EV models, integrated with the autonomous driving technology of Waymo, will be designed and developed in Zeekr's factory located in Sweden, Geely added.

Waymo, on the other hand, anticipated that the abovementioned EVs will be introduced to the U.S. market within the next few years.

Source: AAStocks Financial News