[ET Net News Agency, 22 August 2019] Jefferies Research lowered its target price for
Geely Automobile (00175) to HK$14.7 from HK$15 and maintained its "buy" rating.
The research house said Geely's 1H results were in-line with July's pre-announcement.
But operating cash flow only down 9% helped by inventory reduction. Going forward,
inventory is no longer an issue and wholesale will be improved sequentially with 6 new
cars to launch. Narrowed discounts and increasing utilization will boost margins in 2H.
Jefferies noted that Geely's market share among domestic brands increased from 14.8% to
15.3% in 1H, and the number of staff was cut by 14% (7,000 employees) in 1H to better
control labor cost. (KL)