Tim Hsiao, an analyst from Morgan Stanley, maintained the Buy rating on Geely Automobile Holdings. The associated price target remains the same with HK$24.00.
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Tim Hsiao has given his Buy rating due to a combination of factors that highlight Geely Automobile Holdings’ promising growth prospects. The company is targeting a significant increase in its market share within China by 2026, driven by a robust lineup of models across its various brands. This strategic expansion is expected to mitigate the industry’s projected overseas growth, with Geely aiming to export 300,000 units of new energy vehicles (NEVs) in 2026, a substantial increase from 110,000 in 2025.
Geely’s focus on enhancing profitability is another key factor in the Buy rating. The company anticipates a 30% growth in unit profit in 2026, supported by a favorable overseas sales mix, economies of scale, and cost reductions following the privatization of ZEEKR. Additionally, Geely is working towards improving its gross profit margins, particularly for its ZEEKR brand, and has successfully shortened its payable cycle, which positively impacts its operating cash flow. These strategic initiatives position Geely for strong financial performance, justifying the Buy recommendation.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a HK$27.00 price target.