Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

Geely: How M&As make up its long term technology road map and why that matters in 2015/2016

China's Auto Sales Monthly Data - June 2017

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul><li>Geely is traded down by 30% from its recent high in November due to its exposure in Russia and restructuring of its dealership network. As a result of both, the company issued profit warning expecting 2014 profit to be about half of&nbsp;2.66 billion yuan ($429.79 million) in 2013. The recent sharp decline in share prices makes the company interesting.&nbsp; </li><li>In this article, we re-cap the impact of Russia crisis and examine the action of earnings downgrade by the street.&nbsp; </li><li>We collated Geely's acquisition activities and achievement, to understand how Geely is progressing to be a Chinese auto technology leader.</li><li>We examine Geely's Baidu index with its peers.</li><li>We compared Geely's valuation to its peers.&nbsp;With net cash position, it is trading at 6.6x 15E PER and 0.8x 2015E Book value, a significant discount to its close peers by any metrics.</li></ul>

Geely is traded down by 30% from its recent high in November due to its exposure in Russia and restructuring of its dealership network. As a result of both, the company issued profit warning expecting 2014 profit to be about half of&nbsp;2.66 billion yuan ($429.79 million) in 2013. The recent sharp decline in share prices makes the company interesting.&nbsp; In this article, we re-cap the impact of Russia crisis and examine the action of earnings downgrade by the street.&nbsp; We collated Geely's acquisition activities and achievement, to understand how Geely is progressing to be a Chinese auto technology leader.We examine Geely's Baidu index with its peers.We compared Geely's valuation to its peers.&nbsp;With net cash position, it is trading at 6.6x 15E PER and 0.8x 2015E Book value, a significant discount to its close peers by any metrics.

Geely: Unprecedented opportunity to accumulate the future Chinese auto technology leader

Geely Auto

Geely: Unprecedented opportunity to accumulate the future Chinese auto technology leader