[ET Net News Agency, 13 June 2018] HSBC Global Research raised its target price for
Geely Automobile Holdings (00175) to HK$35 from HK$33, and retained its "buy" rating.
The research house said Geely has one JV for the manufacturing of automobiles with Lynk
& Co (L&C). The JV structure is 50/30/20 for Geely/Volvo Cars/Zhejiang Geely Holding.
HSBC considers Geely a tier-one domestic brand and thinks it has an advantage over
domestic peers due to its relationship with Volvo Cars (VCC). Geely and VCC have had
technological cooperation on the development of Compact Modular Architecture (CMA)
platform prior to the formation of L&C.
Going forward, VCC's Scalable Product Architecture (SPA) platform will also be shared to
produce future models. Engine and transmission technology is also being shared among
Geely, VCC and L&C.
HSBC does not think that Geely's Jointly Controlled Entities (JCE) profitability is
likely to be impacted by the removal of foreign ownership restrictions. (KL)
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00175 GEELY AUTO
Nominal 
9.390 +0.190 (+2.065%) Others
13/06/2018 13:45
[I-bank focus]HSBC ups Geely Automobile (00175) to HK$35
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