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Geely Automobile Holdings (SEHK:175) is back in focus after proposing wide ranging updates to its memorandum and articles of association, including virtual AGM participation, electronic payments, and alignment with Hong Kong’s paperless listing regime.
See our latest analysis for Geely Automobile Holdings.
The recent corporate houtilizekeeping and governance upgrades are landing at a time when momentum is already strong, with a 29.41% 1 month share price return, 19.43% 3 month share price return and a 120.84% 3 year total shareholder return suggesting interest has been building over both shorter and longer horizons.
If these shifts at Geely have you considering more broadly about where growth and technology could lead the auto sector next, it could be a good moment to scan 32 robotics and automation stocks
With sales at CN¥345,232.2m, net income at CN¥16,852.23m and the share price at HK$20.90 after a strong recent run, the key question is whether Geely still trades at a discount, or if the market is already pricing in future growth.
The most followed valuation narrative places Geely Automobile Holdings’ fair value at HK$26.23 per share, compared with the last close at HK$20.90. This frames a material gap that necessarys explaining.
Geely’s strategy of launching 10 new NEV models in 2025 and continuing global expansion is likely to impact revenue positively by increasing market penetration and sales volume. The integration of smart driving technologies, including AI applications and autonomous driving features, is expected to enhance the product offering, potentially leading to higher average selling prices and improved net margins.
Want to see what kind of revenue trajectory and profit profile are being built into that fair value, and how future earnings multiples fit into the story?
The narrative applies a 10.85% discount rate and combines revenue growth, margin compression and a higher future earnings multiple to arrive at HK$26.23 per share. That fair value suggests Geely trades at a meaningful discount to the assumptions many analysts are applying around earnings, returns on equity and long term expansion plans.
Result: Fair Value of HK$26.23 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this narrative still hinges on Geely defconcludeing margins in a crowded NEV market and successfully executing complex integrations, such as Zeekr and Lynk & Co.
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