[ET Net News Agency, 8 October 2019] Morgan Stanley raised its target price for Geely
Automobile Holdings (00175) to HK$8 from HK$5 and maintained its "underweight" rating.
The research house cited multiple dealers noting good or improving sales in the last
week of September. Almost all dealers introduced new discounts for the National Day
holiday to stimulate sales, ranging from gifts to additional discounts.
Morgan expects Geely's wholesale sales growth to turn positive. In April to August,
Geely's sales underperformed the market with 19-29% sales declines, partly against the
high base in 2018. In 4Q, Morgan believes its monthly sales growth will be better than
market expectations thanks to lower base in 4Q 2018, as well as the price cuts introduced
by dealers.
But Morgan still expects Geely's sales to be under pressure in the long term, with
severe competition from Japanese JV brands, especially for Geely's relatively high-end
brands such as Lynk and Xingyue. It still forecasts Geely's sales to decline slightly for
2020-2021. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00175 GEELY AUTO
Nominal 
9.530 -0.020 (-0.209%) Others
08/10/2019 14:58
{I-bank focus}Morgan raises Geely Automobile (00175) to HK$8
| Remark: | Real time quote last updated: 30/04/2024 17:59 |
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