[ET Net News Agency, 21 July 2020] Credit Suisse lifted its target price for Geely
Automobile (00175) to HK$18.5 from HK$17 and maintained its "outperform" rating.
The research house said Geely wholesales (from automaker to dealers) daily volume
increased by 69% in the first two weeks of July, an acceleration versus 20%/21% in
May/June. As a result, Credit Suisse expects Geely to book another double-digit positive
growth in July.
Geely's first half 2020 total sales volume declined 19% 530,446 units, with 1Q volume
down 44% followed by 14% in 2Q. Credit Suisse, thus, estimated Geely to book a net profit
of Rmb2.5bn in 1H (down 38%) due to the COVID-19 impact.
Considering the better-than-expected July sales volume, Credit Suisse revised up its
2020-22 profit estimate by 0.5-1.2%. (KL)