Geely Automobile Holdings Ltd is an investment holding company principally engaged in the production and sales of automobiles. The company mainly develops, manufactures and sells automobiles, including cars, sport utility vehicles (SUVs), new energy and electrified vehicles. The company’s car types include home, travel and sports. The company’s new energy and electrified vehicles include electric vehicles, battery electric vehicles, hybrid electric vehicles, mild hybrid electric vehicles and plug-in hybrid electric vehicles. In addition, the company produces and sells automobile parts and related automobile components.
Development of auto chips. SiEngine Technology, an automotive electronic chip developer, officially released the automotive chip brand “DragonHawk” and its intelligent cockpit chip “DragonHawk 1”. At present, SiEngine Technology mainly has three product lines: Intelligent Cockpit Chips, Automated Driving Chips and Vehicle Central Processing Unit Chips. The release of the 7nm intelligent cockpit chip indicates that Geely has taken the first successful step of core building.
November auto sales volume dipped. Total sales volume of the Group (including the sales volume of LYNK & CO-branded vehicles sold by the Group’s 50%-owned joint venture, namely LYNK & CO JV) was 135,869 units, a decrease of approximately 10% YoY, but up approximately 22% MoM. Of the total sales volume in November 2021, 16,161 units were new energy and electrified vehicles , an increase of around 137% YoY and achieving monthly record high for the Group. The Group’s exports volume was up approximately 11% YoY to 13,065 units, achieving the highest monthly export sales volume level since October 2013.
Updated market consensus of the EPS growth in FY22/23 is 45.1%/24.6% YoY respectively, which translates to 26.4x/18.2x forward PE. Current PER is 34.1x. Bloomberg consensus average 12-month target price is HK$33.41.