Geely Automobile Holdings’s Stock Price Drops to 13.18 HKD, Sees a 5.18% Decline: Is this the Perfect Buying Opportunity?

Geely Automobile Holdings (175)

13.18 HKD -0.72 (-5.18%) Volume: 173.09M

Geely Automobile Holdings’s stock price stands at 13.18 HKD, witnessing a trading session dip of -5.18% on a volume of 173.09M, yet maintaining a robust YTD increase of +53.58%, highlighting the stock’s resilience and potential for growth.

Latest developments on Geely Automobile Holdings

Geely Auto made headlines today as it announced a major shake-up in its operations, with its EV brand Zeekr set to take control of Lynk & Co in a strategic restructuring move. This comes after reports of Geely merging Zeekr and Lynk & Co to streamline its EV empire, leading to a slump in Zeekr shares in New York. Geely’s quarterly revenue hit a new high in Q3 2024, with earnings surging as annual sales approach a 2 million target. The company’s stock price movements were closely watched as Zeekr unveiled deals to acquire a majority stake in Lynk & Co, causing shares to fall sharply. Geely’s strategic integration transactions and restructuring efforts have been closely followed by investors, with Zeekr acquiring a 51% stake in Lynk & Co in a $1.3 billion deal. Overall, Geely Auto‘s stock price movements today reflect the company’s efforts to further integrate its automotive brands and strengthen its position in the competitive EV market.

Geely Automobile Holdings on Smartkarma

Analysts on Smartkarma, like Ming Lu, have been closely following Geely Auto‘s performance. In a recent report titled “Geely (175 HK): 3Q24, Revenue up by 20% and Operating Profit up by 129% (2nd Largest in China)”, Ming Lu highlighted that Geely’s revenue grew by 20% YoY in the third quarter of 2024, with deliveries also increasing by 19% YoY. The operating margin showed improvement, reaching 5.3% compared to 2.9% in the same period last year. Ming Lu predicts an upside of 58% and sets a price target of HK$22 for the end of 2025.

Another report by Caixin Global mentioned that Geely Auto is raising its export target for 2024 to 380,000 units from 330,000 units after a remarkable 67% year-on-year growth in vehicle exports in the first half of the year. Gan Jiayue, the CEO of Geely Auto Group, attributed this success to the company’s aggressive expansion into emerging markets like Africa, where sales surged over 400%. Geely also saw significant growth in Central Asia, Mexico, the Middle East, and other regions. Gan highlighted the company’s plans for further expansion in these markets, showcasing Geely’s commitment to global growth.

A look at Geely Automobile Holdings Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Geely Auto, a passenger vehicles manufacturing company, has a promising long-term outlook based on the Smartkarma Smart Scores. With high scores in Resilience and Momentum, the company is well-positioned to weather challenges and capitalize on opportunities in the market. Additionally, its moderate scores in Value and Growth indicate a solid foundation for sustainable growth in the future.

Despite a lower score in Dividend, Geely Auto‘s overall outlook remains positive, as it continues to focus on passenger vehicles development, manufacturing, and sales. With a diverse range of services and a focus on exports, the company is poised to expand its presence in the global market and drive further success in the coming years.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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