MARKET BUZZ: Geely Automobile Up Nearly 4% As July Sales Surge
By Hong Kong Newsroom
HONG KONG (Aug 08) -- Geely Automobile Holdings rallies 3.8% to HK$19.24 after vehicles sales last month shot up by 88%; sales up 3% month-on month. "We forecast that Geely's sales will rise at a 22% CAGR in 2016-19," Morgan Stanley says in note. "We are positive on Geely's Lynk & Co brand SUV to penetrate into mid- to high-end SUV segment," House says. "We believe the timing of Geely's initiatives to tap into the mid- to high-end SUV segment perfectly match the fast growth of SUV segment we expect in the next few years, as well as the favorable changes in consumer behavior." Adds, stock trading at 14.3X 2018e, at 30% premium to its historical (since 2010) average of 11.0, reflecting high expectations for its upcoming Lynk & Co SUV models.
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