📢Yesterday after market, Geely reported a 59% jump to 3.8 billio yuan in its 3Q net income
📈The income jump was driven by their ongoing discount campaign that turbo-charged sales even as China's regulator has stepped up scrutiny on price wars.
🎽Geely’s robust performance contrasts with BYD, its biggest rival, which has seen profit slump in the past two quarters.
💭While Chinese authorities have tried to rein in unreasonable price cuts, Geely and peers have persisted with offering different forms of incentives to stimulate sales.
💰In early Nov for example, Geely launched a rebate of up to 15,000 yuan to make up for the scaling back of an electric vehicle purchase tax break from the start of 2026 (Bloomberg)
⛈Looking forward, the Chinese auto industry may face uncertainties given the winding back of a national trade-in subsidies, and the pressure to pay suppliers quicker
😎And while Geely's CEO acknowledged that "people haven’t been positive about auto stocks mostly due to the many uncertainties in the coming year,” Geely's management is optimistic on 2026 with more Zeekr merger cost synergies expected alongside another strong year for new products and overseas recovery
🔻 $GEELY AUTO(00175)$ shares had traded down 1.9% yesterday to HKD 17.20, and trading relatively unchanged this morning
📊Analysts polled by Bloomberg have 47 buys on Geely shares, 1 hold and 0 sells, with an average 12-month target price of HKD 26.25, 54% higher from its current HKD 17.08 price
✳Macquarie listed a new Geely call warrant $Geely MB eCW260505(PZRW.SI)$ (https://www.warrants.com.sg/tools/livematrix/PZRW) last Friday. The warrant has fallen 16.7% to SGD 0.030 (as of 1015AM) since listing on the back of Geely's 2.4% share price fall over the same period
🚫There are no put warrants available over Geely
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