Geely - new call warrant to trade Chinese EV outperformer
🆕Macquarie has listed a new call warrant $Geely MB eCW261103(IMOW.SI)$ (https://warrants.com.sg/tools/livematrix/IMOW) tracking $GEELY AUTO(00175)$ shares
✳The warrant is priced at SGD 0.038 while Geely trades at HKD 18.17, and will move approximately 5.3% for a 1% move in Geely shares, based on its effective gearing level of 5.3x this morning as of 925AM
✨At roughly flat year to date (-0.2%), Geely has meaningfully outperformed $BYD COMPANY(01211)$ (-10.8%), Li Auto (-15.7%), Xpeng (-22.8%), and the HSTECH Index (-17.1%),
Only $NIO Inc. USD OV(NIO.SI)$ (+4.8%) has done better among this peer group, according to Bloomberg AskB
According to Bloomberg, the entire Chinese EV space has been under pressure since late April, with weak domestic passenger car sales (-22.1% year on year in May) and a reversal of mainland southbound flows into HK weighing on the group
However, Geely's relatively resilient PHEV sales
mix (+32% year on year in May) has helped it hold up better than pure-play EV names
In the latest preliminary May New EV sales data released, Zeekr+Lynk posted +18% year on year growth driven by Zeekr 9X/8X, supporting an improving mix for Geely, offsetting slightly slower Galaxy growth (decline of -10% month-on-month)
Analyst consensus polled by Bloomberg remains constructive on Geely shares, with 44 buys, 3 holds, and 0 sells on the shares and a 12-month target price of HKD 28.71
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