Geely’s shares surge after sales hit top gear in September
Chinese carmaker gains 5.3 per cent in Tuesday trading after selling a record 76,544 vehicles in September, up 43 per cent from August
Chinese carmaker Geely rallied on Tuesday, bucking the market’s downward trend to close 5.3 per cent higher after the company announced a dramatic rise in monthly sales in September.
The carmaker sold a record 76,544 cars in the month, up 43 per cent from August, which on a yearly basis is an 82 per cent rise. It exported 2,074 cars in the month, a 181 per cent surge from the same period last year, while its total China sales were up by about 80 per cent year-on-year to 74,470.
Total sales in the first nine months were 459,041, up 29 per cent on last year, and already 70 per cent of its revised full-year sales target of 660,000 units.
Liang Yong-huo, an analyst at China Merchants Securities, said Geely is his top pick in China’s auto sector at present, with strong sales growth.
“The newly launched model Emgrand GL will be a new catalyst for Geely’s stock price,” said Liang, who set the one-year target price to HK$11, which is 46 per cent higher than Tuesday’s close at HK$7.55. The Hang Seng index fell 1.27 per cent to 23,549.52 points.
Geely started production at a new assembly plant in Baoji in Shaanxi province last week, to supply the northwest China market.
The 7.2 billion yuan factory, Geely’s second in the northwest, will produce up to 200,000 vehicles and 200,000 engines a year, the company said. The other is in Lanzhou, Gansu province.
Most of the company’s existing plants are in east China’s Zhejiang and Shandong provinces as well as in central Hunan province.
“The new facility is producing the Geely Boyue, a crossover utility vehicle that has enjoyed strong demand since it debuted in March,” said Lo Ka-leong, an automobile analyst with Kim Eng Securities (HK) in a recent report.
In the first eight months of the year, Geely’s deliveries rose 22 per cent year-on-year to 382,497 vehicles on strong sales of the Boyue and other models, Lo’s figures show.