Citigroup Initiates 30-Day Positive Catalyst Watch on Geely Auto

Stock News
Mar 20

Citigroup has issued a research report announcing a 30-day positive catalyst observation period for Geely Auto (00175), maintaining a "Buy" rating with a target price of HK$26. The bank forecasts that the company will deliver 690,000 vehicles in the first quarter of this year, with the average selling price increasing by 8% quarter-on-quarter. Including non-vehicle revenue, first-quarter revenue is expected to reach approximately RMB 91 billion. Citigroup also projects that Geely's consolidated gross profit margin will rise by 0.3 percentage points to 17.2% in the first quarter. Assuming a sales and administrative expense ratio of 12.4% of quarterly revenue, core net profit for the first quarter is estimated to be between RMB 3.8 billion and RMB 4.2 billion, outperforming market expectations. Additionally, Geely anticipates an improvement in profit margins in the second quarter, with sales of the high-margin model 8X expected to reach 10,000 to 20,000 units. The company also forecasts a 10% quarter-on-quarter growth in export volumes for the second quarter.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10