SEHK:175

Stock Analysis Report

Geely Automobile Holdings

Executive Summary

Geely Automobile Holdings Limited, an investment holding company, operates as an automobile manufacturer primarily in the People’s Republic of China.

Rewards

Trading at 18.8% below its fair value

Earnings are forecast to grow 13.02% per year

Risk Analysis

No risks detected for 175 from our risk checks.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Geely Automobile Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 175 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

175

4.8%

HK Auto

2.9%

HK Market


1 Year Return

4.4%

175

-5.9%

HK Auto

-3.8%

HK Market

Return vs Industry: 175 exceeded the Hong Kong Auto industry which returned -5.9% over the past year.

Return vs Market: 175 exceeded the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

175IndustryMarket
7 Day4.0%4.8%2.9%
30 Day-3.0%-3.8%-4.1%
90 Day0%0.9%2.9%
1 Year7.4%4.4%-2.2%-5.9%-0.2%-3.8%
3 Year41.5%34.7%-5.3%-13.3%15.3%3.7%
5 Year373.7%344.2%4.8%-9.7%16.8%-2.7%

Price Volatility Vs. Market

How volatile is Geely Automobile Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Geely Automobile Holdings undervalued compared to its fair value and its price relative to the market?

18.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 175 (HK$15.06) is trading below our estimate of fair value (HK$18.54)

Significantly Below Fair Value: 175 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 175 is poor value based on its PE Ratio (12.3x) compared to the Auto industry average (11.6x).

PE vs Market: 175 is poor value based on its PE Ratio (12.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 175 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 175 is overvalued based on its PB Ratio (2.6x) compared to the HK Auto industry average (0.6x).


Next Steps

Future Growth

How is Geely Automobile Holdings forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 175's forecast earnings growth (13% per year) is above the savings rate (1.6%).

Earnings vs Market: 175's earnings (13% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

High Growth Earnings: 175's earnings are forecast to grow, but not significantly.

Revenue vs Market: 175's revenue (8% per year) is forecast to grow slower than the Hong Kong market (10.5% per year).

High Growth Revenue: 175's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 175's Return on Equity is forecast to be low in 3 years time (18.4%).


Next Steps

Past Performance

How has Geely Automobile Holdings performed over the past 5 years?

41.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 175 has high quality earnings.

Growing Profit Margin: 175's current net profit margins (9.8%) are lower than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: 175's earnings have grown significantly by 41.9% per year over the past 5 years.

Accelerating Growth: 175's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 175 had negative earnings growth (-23.7%) over the past year, making it difficult to compare to the Auto industry average (-11.2%).


Return on Equity

High ROE: 175's Return on Equity (21.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Geely Automobile Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 175's short term assets (CN¥39.5B) do not cover its short term liabilities (CN¥42.2B).

Long Term Liabilities: 175's short term assets (CN¥39.5B) exceed its long term liabilities (CN¥2.4B).


Debt to Equity History and Analysis

Debt Level: 175's debt to equity ratio (7.3%) is considered satisfactory.

Reducing Debt: 175's debt to equity ratio has increased from 4.8% to 7.3% over the past 5 years.

Debt Coverage: 175's debt is well covered by operating cash flow (392%).

Interest Coverage: 175 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 175 has a high level of physical assets or inventory.

Debt Coverage by Assets: 175's debt is covered by short term assets (assets are 11.5x debt).


Next Steps

Dividend

What is Geely Automobile Holdings's current dividend yield, its reliability and sustainability?

2.20%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.2%markettop25%6.3%industryaverage3.0%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: 175's dividend (2.2%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 175's dividend (2.2%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: 175's dividend payments have been volatile in the past 10 years.

Growing Dividend: 175's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28%), 175's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 175's dividends in 3 years are forecast to be well covered by earnings (24.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.0yrs

Average management tenure


CEO

Sheng Yue Gui (55yo)

14yrs

Tenure

CN¥5,714,000

Compensation

Mr. Sheng Yue Gui has been the Chief Executive Officer at Geely Automobile Holdings Ltd. since February 23, 2006. Mr. Gui served as the Chief Executive Officer at Zhejiang Geely Holding Group Co., Ltd. and ...


CEO Compensation Analysis

Compensation vs Market: Sheng Yue's total compensation ($USD818.48K) is about average for companies of similar size in the Hong Kong market ($USD1.12M).

Compensation vs Earnings: Sheng Yue's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Shu Fu Li
Executive Chairman14.7yrsCN¥339.00k0.25% CN¥349.8m
Sheng Yue Gui
CEO & Executive Director14yrsCN¥5.71m0.16% CN¥219.7m
Jian Yang
Executive Vice Chairman11.6yrsCN¥221.00k0.065% CN¥90.4m
Dong Hui Li
Executive Vice Chairman3.6yrsCN¥251.00k0.023% CN¥31.7m
Siu Lun Ang
Executive Director16yrsCN¥4.77m0.043% CN¥60.2m
Mei Wei
Executive Director9.1yrsno datano data
Cong Hui An
Executive Director8.2yrsno data0.054% CN¥74.8m
Chung Cheung
Financial Controller & Company Secretary14.8yrsno datano data
Yang Dai
Head of Investor Relation Department0yrsno datano data
Xiao Dong Sun
Head of Sales Division and Vice President of the Brand Development & Product Planning6.8yrsno datano data

14.0yrs

Average Tenure

55yo

Average Age

Experienced Management: 175's management team is seasoned and experienced (14 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shu Fu Li
Executive Chairman14.7yrsCN¥339.00k0.25% CN¥349.8m
Sheng Yue Gui
CEO & Executive Director14yrsCN¥5.71m0.16% CN¥219.7m
Jian Yang
Executive Vice Chairman11.6yrsCN¥221.00k0.065% CN¥90.4m
Dong Hui Li
Executive Vice Chairman3.6yrsCN¥251.00k0.023% CN¥31.7m
Siu Lun Ang
Executive Director16yrsCN¥4.77m0.043% CN¥60.2m
Mei Wei
Executive Director9.1yrsno datano data
Cong Hui An
Executive Director8.2yrsno data0.054% CN¥74.8m
Cheuk Yin Lee
Independent Non-Executive Director17.7yrsCN¥165.00k0.0098% CN¥13.6m
Sau Hung Yeung
Independent Non-Executive Director14.7yrsCN¥165.00kno data
Yang Wang
Independent Non-Executive Director7.8yrsCN¥205.00k0.011% CN¥15.1m

13.1yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 175's board of directors are seasoned and experienced ( 13.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Geely Automobile Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Geely Automobile Holdings Limited
  • Ticker: 175
  • Exchange: SEHK
  • Founded:
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: HK$138.610b
  • Shares outstanding: 9.20b
  • Website: https://www.geelyauto.com.hk

Number of Employees


Location

  • Geely Automobile Holdings Limited
  • Great Eagle Centre
  • 23rd Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GELY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1997
175SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 1997
GRUDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1997
175SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 1997
175SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 1997
0YZ2LSE (London Stock Exchange)YesOrdinary SharesGBHKDOct 1997
GRUWBAG (Wiener Boerse AG)YesOrdinary SharesATEUROct 1997
175 NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNOct 1997
GELY.YOTCPK (Pink Sheets LLC)UNSP ADR EA REP 20 ORD SHS HKD0.02USUSDNov 2009
GRUADB (Deutsche Boerse AG)UNSP ADR EA REP 20 ORD SHS HKD0.02DEEURNov 2009

Biography

Geely Automobile Holdings Limited, an investment holding company, operates as an automobile manufacturer primarily in the People’s Republic of China. The company engages in the research and development, production, marketing, and sale of automobiles, automobile parts, and related automobile components, as well as provision of related after-sales and technical services. It primarily offers sedans, sport utility vehicles, and electric vehicle models. The company also provides vehicles design services. In addition, it is involved in the research and development of automobile engines and electric hybrid engines. The company also exports its products primarily to the Middle East, Europe, and Africa. The company is headquartered in Wan Chai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:46
End of Day Share Price2020/02/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.