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Research Report

08/01/2020 14:57

{I-bank focus}Jefferies restarts Geely Automobile at HK$20.6

[ET Net News Agency, 8 January 2020] Jefferies Research assumed coverage on Geely
Automobile Holdings (00175) with a "buy" rating and a target price of HK$20.6.
Through its dominant partnerships with Huawei, China Unicom (00762), and Quanergy, Geely
is poised to become the domestic leader in the development of self-driving and develop
autonomous technology, the research house said.
The 1H 2019 destocking cycle was efficient and helped Geely roll out new models to
narrow sales discounts and improve margins in 2H 2019. Given its coverage in low tier
cities and rural regions, Jefferies expects Geely's sales volume to rebound to boost
capacity utilization. (KL)

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