Intrinsic Value Geely Automobile Holdings Limited (80175.HK)

• Previous Close: HK$14.35
• Intrinsic Value: n/a
• Upside potential: n/a%

Stock Valuation Context

Business Model And Market Position

Geely Automobile Holdings Limited is a prominent automobile manufacturer operating primarily in China, with a diversified portfolio spanning sedans, SUVs, wagons, and a rapidly expanding lineup of electric vehicles under its Geely and ZEEKR brands. The company's core revenue model integrates the research, development, production, and sale of passenger vehicles, complemented by critical components like transmissions, electric powertrains, and battery systems, alongside a suite of after-sales and technical services. Operating within the highly competitive global automotive sector, Geely has established a significant market position as a leading Chinese automaker, leveraging extensive vertical integration from parts manufacturing to advanced mobility technology solutions. Its strategic international footprint across Eastern Europe, the Asia Pacific, the Middle East, and other regions supports its ambition to be a global player, competing on innovation, technology, and brand strength in both traditional and electric vehicle markets.

Revenue Profitability And Efficiency

For the fiscal year, the company reported robust revenue of CNY 240.2 billion, demonstrating its significant scale in the automotive market. Net income stood at CNY 16.6 billion, reflecting a healthy profit margin. Strong operating cash flow of CNY 26.5 billion indicates effective management of core operations, supporting ongoing investments and financial flexibility.

Earnings Power And Capital Efficiency

The company generated diluted earnings per share of CNY 1.63, showcasing its earnings capacity on a per-share basis. Capital expenditures of CNY -3.0 billion indicate ongoing investment in production capacity and technological advancement, which is critical for future growth in the competitive and capital-intensive automotive industry.

Balance Sheet And Financial Health

Geely maintains a solid liquidity position with cash and equivalents of CNY 40.9 billion. Total debt is reported at CNY 6.5 billion, which appears manageable relative to its cash holdings and market capitalization, suggesting a prudent financial structure with low leverage risk.

Growth Trends And Dividend Policy

The company has demonstrated a commitment to returning capital to shareholders, evidenced by a dividend per share of CNY 0.30217. This dividend policy, combined with its investments in electric vehicle technology and international expansion, reflects a balanced approach to pursuing growth while providing shareholder returns.

Valuation And Market Expectations

With a market capitalization of approximately CNY 170.0 billion and a beta of 1.136, the market prices the stock with volatility slightly above the broader market. This valuation incorporates expectations for the company's execution in the evolving electric vehicle segment and its competitive positioning.

Strategic Advantages And Outlook

Geely's key advantages include its strong brand portfolio, vertical integration in component manufacturing, and significant investment in EV technology and R&D. The outlook is tied to its ability to capitalize on the global transition to electric mobility and effectively compete in international markets against established automakers.

Sources

Company Annual ReportHong Kong Stock Exchange Filings