[ET Net News Agency, 24 March 2021] Daiwa Research lifted its target price for Geely
Automobile (00175) to HK$22 from HK$40 and downgraded its rating to "hold" from "buy".
Geely launched a new brand ZEEKR, which will produce premium smart EVs from 2021. The
research house is concerned about Geely's profitability improvement given potential losses
due to the new brand.
Daiwa cut its 2021-22 EPS forecasts by 34% due to (1) higher selling expense assumption
to promote ZEEKR and other new models, and (2) potential losses from the new JV in its
initial 3-5 years. (KL)