Geely Automobile 0175

Re: Geely Automobile 0175

Postby investar » Fri Apr 09, 2010 5:32 pm

Since the Volvo deal is signed, this has become a boring stock!

4.1 low and 4.3 high for many days now already.
Maybe the earnings on Monday will provide some fireworks.
In anticipation, Daiwa already raised the target price.
I think estimates (net profit up 70% yoy) will be hard to beat as the numbers of the car sales are already a known fact;
but maybe positive newsflow regarding the progress of the Volvo deal will act as a catalyst to burst through this 4.3 resistance in the near future.
Why not, if we consider the run of Greatwall Motor. In the last 3 months, Greatwall is up 80% while Geely stayed flat. With comparable growth figures.
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Re: Geely Automobile 0175

Postby lithium » Sat Apr 10, 2010 12:49 pm

Think so too, thinking of switching it to another stock. :)
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Re: Geely Automobile 0175

Postby hoco27 » Mon Apr 12, 2010 1:11 pm

I think its more for Geely to learn from Volvo's expertise in safety measures. But undoubtedly it still has a long way to go.
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Re: Geely Automobile 0175

Postby iam802 » Mon Apr 12, 2010 3:00 pm

Geely’s Profit Rises on Higher Sales, Unit Stakes

http://www.bloomberg.com/apps/news?pid= ... QD.0&pos=6

Key Points:
- higher sales
- cost cutting
- considering taking control of Maganese Bronze (makers of London cab); a proxy for the UK market?
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Re: Geely Automobile 0175

Postby investar » Mon Apr 12, 2010 4:05 pm

I am out,
disappointed,
but I did not like falling out below the recent range,
maybe re-entry at 3.52? or 4.35?
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Re: Geely Automobile 0175

Postby lithium » Wed Apr 14, 2010 6:38 pm

Nice strategy ;)
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Re: Geely Automobile 0175

Postby winston » Tue Apr 27, 2010 6:20 pm

Not vested. From Phillips:-


Risk

Economy decline would cut vehicle demand.
Price war undermines its cost advantages.
Rivals launching competitive models snatches low end market share.
Whether Its new launched brands are widely acknowledged.
Big funding demand may encounters bottleneck limiting its expanding.


Valuation

As the Company's three best selling models, "Free Cruiser", "Geely King Kong", "vision" will continue to play the main role of the structure of sales, we expect its earnings to rely more on the expansion of scale, while the new brands such as Geely Panda and Emgrand not yet to be the main profitable contribution in the fierce competition in the short term.

We forecast its net profit in FY2010 and FY2011 to RMB1.317billion and RMB1.504billion, EPS of HK$0.23 and HK$0.26.

In valuation, given the Hong Kong listed peers are traded on 16x PE, we give 12m TP of HK$3.69 on 16x P/E of 2010E EPS, rating Hold.
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Re: Geely Automobile 0175

Postby iam802 » Mon Aug 09, 2010 10:23 pm

Interesting remarks. Wonder how long will it take to position Volvo as a luxury brand against BMW and Mercs (should also put Lexus in this market segment).

But, let's not discard such visions. Will be watching it.

First thing to observe is the S60 launch (when will it be available and the sales associated since this will be the 'first car' to be launch under Geely management even though it has been in the works for a number of years).

http://english.caijing.com.cn/2010-08-09/110494394.html


As the new owner of Volvo, Geely said it would move Volve upmarket and offer a competitor to the BMW 7 Series and Mercedes-Benz S-Class.

Volve, the Swedish auto maker that completed the $1.3 billion purchasing deal last Monday with Geely, is ready to compete with luxury car brands such as Mercede-Benze and BMW in auto car market by creating a new luxury car, Li Shufu, the new chief of Volve said during an interview with Caijing Magazine.

“Volve will edge in luxury auto market with new products,” Li said. In a decade when owned by Fort, Volve has stayed away from this market to competition with some luxury brands including Land Rover and Jaguar.

“Currently, Volvo is in direct competition with Mercede-Benz and BMW, but only with BMW 3 Series, 5 Series and Mercedes E-Class,” said Li, “Volvo aims to compete with BMW 7 Series and Mercedes S-Class.” Li did not disclose concrete strategic measures.

It is the intellectual property right which acquired during the M&A, not the M&A itself that matters in the takeover of technologies, according to Li.

He told Caijing reporters Geely has purchased the exclusive intellectual property right owned by Volve while the intellectual property rights shared with Ford need to be authorized bilaterally when used by Geely.

“As a mass-market brand, Geely has different clients with Volve. We tend to adopt some technologies suitable for Geely and less costly,” Li said.

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2. The trend will END but I don't know WHEN.

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Re: Geely Automobile 0175

Postby kennynah » Mon Aug 09, 2010 11:58 pm

hmm....i'm confused..

i thought S60 has been on the road for some time already??
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Re: Geely Automobile 0175

Postby iam802 » Tue Aug 10, 2010 12:32 am

A new look (prototype was shown last year in trade shows).

In fact, they have stop selling the old or existing S60 model since last year.

So, in a way, these car manufacturers are pretty good at phasing out inventory.


New look

Image
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