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Is It Time To Buy Geely Automobile Holdings Limited (HKG:175)?

Micheal Lombardo

Geely Automobile Holdings Limited (SEHK:175) saw a double-digit share price rise of over 10% in the past couple of months on the SEHK. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Geely Automobile Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for Geely Automobile Holdings

What is Geely Automobile Holdings worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 17.18% below my intrinsic value, which means if you buy Geely Automobile Holdings today, you’d be paying a reasonable price for it. And if you believe the company’s true value is HK$30.25, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Geely Automobile Holdings’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.

What kind of growth will Geely Automobile Holdings generate?

SEHK:175 Future Profit Feb 28th 18

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Geely Automobile Holdings. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has already priced in 175’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on 175, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Geely Automobile Holdings. You can find everything you need to know about Geely Automobile Holdings in the latest infographic research report. If you are no longer interested in Geely Automobile Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.