| Valuation method | Value, HK$ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 14.70 | 2 |
| Graham Formula | 73.40 | 411 |
Geely Automobile Holdings Limited is a leading Chinese automobile manufacturer headquartered in Hong Kong, operating primarily in China's competitive automotive market. As a comprehensive vehicle producer, Geely engages in research and development, production, marketing, and sales of passenger vehicles including sedans, SUVs, wagons, and electric vehicles under its Geely and ZEEKR brands. The company has expanded beyond traditional manufacturing to offer advanced automotive components, electric powertrains, battery systems, and sophisticated mobility technology solutions. With operations spanning Eastern Europe, the Netherlands, Sweden, France, Asia Pacific, Middle East, Latin America, and Africa, Geely has established a significant international presence. The company's vertical integration strategy encompasses everything from vehicle transmissions and engines to software development and virtual engineering, positioning it as a full-spectrum automotive technology provider in the rapidly evolving global auto industry focused on electric vehicle transition and smart mobility solutions.
Geely Automobile presents a compelling investment case with its strong position in the world's largest automotive market, diversified product portfolio spanning traditional and electric vehicles, and robust financial metrics including CNY 24 billion in revenue and CNY 1.66 billion net income. The company's healthy cash position of CNY 40.9 billion provides ample liquidity for continued R&D investment in electric vehicle technology and international expansion. However, investors should note the competitive intensity in China's EV market, geopolitical risks affecting international operations, and the capital-intensive nature of automotive manufacturing. The beta of 1.136 indicates higher volatility than the market, reflecting sensitivity to economic cycles and consumer discretionary spending patterns. The dividend yield provides income support, but growth prospects depend on successful execution of electric vehicle adoption and market share gains against both domestic and international competitors.
Geely Automobile operates in a highly competitive landscape characterized by intense rivalry from both domestic Chinese manufacturers and global automotive giants. The company's competitive advantage stems from its strong domestic market presence, vertically integrated manufacturing capabilities, and aggressive push into electric vehicles through its ZEEKR brand. Geely's ownership by Zhejiang Geely Holding Group provides access to broader technological resources, including those from Volvo Cars and Lotus, enhancing its R&D capabilities. The company's strength in internal combustion engine vehicles provides cash flow to fund EV transition, while its extensive dealership network across China offers significant distribution advantages. However, Geely faces intense price competition in the mass market segment and must continuously invest in technology to keep pace with EV specialists like BYD and NIO. The company's international expansion provides diversification benefits but also exposes it to geopolitical risks and established competition in mature markets. Geely's modular vehicle architecture approach helps control costs and accelerate development, but execution risk remains high given the capital requirements and technological pace of the industry transformation.