[ET Net News Agency, 8 July 2020] Daiwa Research lifted its target price for Geely
Automobile (00175) to HK$17 from HK$16 but downgraded its rating to "hold" from "buy".
The research house said Geely reported a strong June sales volume of 110k units, up 21%
YoY, and 1H sales volume of 530k units, down 19%. Daiwa still sees uncertainty over its 2H
sales volume, while Geely's current 16x 1-year forward PER is above its past-3-year
average and sufficiently reflects its business outlook.
Thus, Daiwa believes it is time to book profits after its share price rallied 35% in the
past three trading days, but it remains positive on Geely in the long term. (KL)