Geely Automobile Holdings (GELYF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Ji Shi from CMB International Securities maintained a Buy rating on the stock and has a HK$23.00 price target.
Ji Shi has given his Buy rating due to a combination of factors that highlight Geely Automobile Holdings’ potential for growth and profitability. The company’s gross profit margin in the fourth quarter of 2024 exceeded expectations, which bolsters confidence in both its new energy vehicle and internal combustion engine segments for the fiscal year 2025. Despite some challenges, such as a decline in sales from Viridi and mixed net profit results due to forex losses and intangible asset impairments, Geely’s strategic moves, including gains from partial equity disposals and changes in joint ventures, have positioned it well for future success.
Furthermore, Ji Shi is optimistic about the sales volume forecast for 2025, particularly for the Geely and Galaxy brands, which are expected to benefit from economies of scale and new model successes. Although there are concerns regarding the Zeekr and Lynk & Co brands, the overall outlook remains positive with an anticipated increase in net profit and a potential forex gain. The valuation of Geely’s businesses, excluding Zeekr, remains strong, and the target price has been raised, reflecting confidence in the company’s ability to navigate competitive pressures and enhance profitability.
According to TipRanks, Shi is ranked #1489 out of 9393 analysts.
In another report released today, DBS also maintained a Buy rating on the stock with a HK$19.80 price target.