[ET Net News Agency, 24 May 2018] Morgan Stanley maintained its target price for Geely
Automobile Holdings (00175) at HK$30 unchanged, and upgraded its rating to "overweight"
from "equal-weight".
The research house said Geely has opted for a multi-brand strategy (through its Lynk &
Co brand) to tap into the mid-to-high-end SUV segment. Morgan believes the timing of
Geely's initiatives match two trends: (l) The fast growth of the SUV segment in the next
few years; (2) The rise in customers from the younger generation and the fast growth of
auto finance options.
Morgan said young customers are more focused on design, quality, and driving experience
when buying a car than on brand name. Moreover, this group of customers are more used to
the leverage in auto finance than the older generation, which improves the affordability
of midrange to high-end cars. These factors should benefit Geely's Lynk & Co brand. (KL)