Geely Automobile Holdings: Strong Financial Performance and Strategic Initiatives Justify Buy Rating

Morgan Stanley analyst Tim Hsiao has maintained their bullish stance on GELYF stock, giving a Buy rating today.

Tim Hsiao has given his Buy rating due to a combination of factors including Geely Automobile Holdings’ strong financial performance and growth prospects. The company reported a significant year-over-year increase in earnings for the first quarter of 2025, reaching the upper end of its preliminary results. This growth was driven by a notable increase in revenue and vehicle sales volume, despite a slight decline in average selling prices.
Furthermore, Geely’s operating margin saw substantial improvement, benefiting from foreign exchange gains, reduced selling expenses, and enhanced operating leverage. The company’s ability to maintain a healthy unit profit per vehicle, even when excluding the impact of its ZEEKR brand, underscores its operational efficiency. These positive financial indicators, coupled with strategic initiatives such as the proposed ZEEKR privatization and a robust electric vehicle pipeline, contribute to the optimistic outlook and justify the Buy rating.

According to TipRanks, Hsiao is an analyst with an average return of -1.6% and a 37.61% success rate. Hsiao covers the Consumer Cyclical sector, focusing on stocks such as BYD Co, Geely Automobile Holdings, and Nio.

In another report released today, DBS also maintained a Buy rating on the stock with a HK$23.00 price target.