[ET Net News Agency, 3 January 2019] Morgan Stanley lowered its target price for Geely
Automobile Holdings (00175) to HK$8 from HK$15 and downgraded its rating to "underweight"
from "equal-weight".
The research house said inventory across Geely's major model has risen to over 3 months.
Even inventories of its premium brand, Lynk & Co, have risen to 1-1.5 months. It noted
that sales of the Lynk & Co brand dropped 19% MoM in November 2018, to 12k units, in
contrast with GAC Toyota's 64.6% YoY growth and 9.2% MoM growth for November 2018.
Morgan said this suggests that Japanese JVs would continue to outperform domestic brands
with better value for money. It would turn more positive on Geely if it successfully
solves its high inventory and maintains healthy sales growth. (KL |
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