GEELY AUTOMOBILE to provide electric vehicle platform to Polish company

Trending News 🌥️

Geely Automobile ($SEHK:00175), a Chinese car company, is to provide an electric vehicle platform to a Polish company. The move is part of Geely’s plan to extend its reach into the European market. The Polish company, which has not been named, will use the platform to develop its own electric vehicles. Geely Automobile is a leading Chinese car company with a strong presence in the domestic market. The company has been expanding its international operations in recent years and sees the European market as a key growth area.

The provision of an electric vehicle platform to a Polish company is part of Geely’s strategy to establish a foothold in the European market. Electric vehicles are seen as a key growth area for the automotive industry in the coming years. Geely Automobile is well placed to take advantage of this trend with its strong R&D capabilities and experience in the electric vehicle market. The company’s electric vehicles are already popular in China and it is hoped that they will find success in Europe as well.

Share Price

The news of this event has been mostly positive, as it could lead to more widespread adoption of electric vehicles. However, on Friday, GEELY AUTOMOBILE stock opened at HK$10.9 and closed at HK$10.4, down by 3.0% from previous closing price of 10.8. Some investors may be concerned about the company’s ability to execute this plan, but overall the reaction has been positive.

VI Analysis

Geely Automobile is a Chinese multinational automotive manufacturing company headquartered in Hangzhou, Zhejiang. The company sells passenger cars under six brand names: Emgrand, Englon, Geely, Volvo, Proton and Lotus. The company’s fundamentals reflect its long term potential.

However, based on VI’s Risk Rating, Geely Automobile is a medium risk investment in terms of financial and business aspects. This is due to 2 risk warnings in the company’s income sheet and balance sheet.

VI Peers

Geely Automobile Holdings Ltd, Hino Motors Ltd, Zotye Automobile Co Ltd, and Yulon Motor Co Ltd are all competing for a share of the Chinese automotive market. Hino is a well-established Japanese automaker, but has been struggling in recent years. Zotye is a Chinese automaker that has been growing rapidly in recent years. Yulon is a Taiwanese automaker that has been trying to expand its presence in China.

– Hino Motors Ltd ($TSE:7205)

Hino Motors Ltd is a Japanese manufacturer of commercial vehicles and diesel engines. The company is a subsidiary of Toyota Motor Corporation. As of 2022, Hino Motors Ltd has a market cap of 360.49B and a Return on Equity of -4.51%. The company produces a wide range of commercial vehicles, including trucks, buses, and light-duty vehicles. Hino Motors Ltd also produces a variety of engines for use in commercial vehicles, construction equipment, and generators.

– Zotye Automobile Co Ltd ($SZSE:000980)

Zotye Automobile Co Ltd, based in China, is engaged in the manufacture and sale of automobiles. As of 2022, the company had a market capitalization of 32.19 billion and a return on equity of -4.87%. The company’s products include passenger cars, SUVs, and minivans. Zotye also has a joint venture with General Motors, which manufactures and sells vehicles under the Baojun brand.

– Yulon Motor Co Ltd ($TWSE:2201)

Yulon Motor Company is a Taiwanese car manufacturer. It was founded in 1953 as Lung-Chuan Motor Works. The company has a market cap of $48.83 billion as of 2022 and a return on equity of 7.2%. Yulon Motor manufactures and sells cars and commercial vehicles under the Luxgen brand. It also manufactures and sells electric vehicles under the Yulon EV brand. The company has assembly plants in Taiwan, China, and Malaysia.

Summary

Investing in GEELY AUTOMOBILE can be a good way to gain exposure to the electric vehicle market. The news around GEELY AUTOMOBILE has been mostly positive, but the stock price has moved down in recent days.