Geely Auto, 175 HK, maintained its momentum in July thanks partly to the acceptance of its new Emgrand GS crossover SUV and the recently introduced Boyue SUV.
*HK filings – January and February based on an average for both months since company presented combined sales, due to the skewed impact of the Chinese New Year.
Although monthly increases have been gradual, the year on year changes: 16.75% year to date and 64.05% monthly year on year, show just how bad 2015 was.
Geely even managed to turn around dismal export numbers, at least compared to June.
Geely’s stock more than reflects this increase, with a 12 month return of 73%, far outpacing the Hang Seng.
Whether the first half earnings will show a major increase in profit, however, remains to be seen with stiff competition and big players like Ford, which sold 577,097 autos in China in the first half compared to Geely’s 280,337, representing an increase of 6%, projecting negative pricing for the full year 2016 for itself and the industry in China to be 6%. (Ford, F, sells in the Chinese market mainly through Changan-Ford and Jiangling Ford). Based on history, Geely should report around August 19, 2016. Tighten your seat belts.