|Bid||11.740 x 0|
|Ask||11.760 x 0|
|Day's Range||11.640 - 12.060|
|52 Week Range||10.000 - 19.140|
|Beta (5Y Monthly)||1.08|
|PE Ratio (TTM)||7.38|
|Earnings Date||Mar 30, 2020|
|Forward Dividend & Yield||0.35 (2.98%)|
|Ex-Dividend Date||Jun 14, 2019|
|1y Target Est||21.74|
Sweden's Volvo Car Group, owned by China's Geely, scaled back its guidance for the full year, warning that sales, earnings and cash flow in the first half of 2020 would decline from a year ago as the coronavirus pandemic weighed on its business. The Gothenburg-based carmaker, which Geely acquired from Ford Motor Co <F.N> in 2010, had said only last month it expected to grow sales and profit this year, but that was before the coronavirus spread rapidly through Europe and North America. "The weakening market and production disruptions will impact the first half year results negatively as sales, profit and cash flow are expected to be lower than last year's and it will be challenging to recover the impact during the remainder of the year," it said in a statement.
Moody's Investors Service has placed the ratings of five automakers in Korea and China on review for downgrade. The five companies are Hyundai Motor Company, Kia Motors Corporation, Dongfeng Motor Group Company Limited, Beijing Automotive Group Co., Ltd. and Geely Automobile Holdings Limited. At the same time, Moody's has placed on review for downgrade the ratings on the bonds issued by Dongfeng Motor (Hong Kong) Intl Co., Ltd. and BAIC Inalfa HK Investment Co., Limited, which are guaranteed by Dongfeng Motor Group Company Limited and Beijing Automotive Group Co., Ltd., respectively.
Swedish carmaker Volvo is suspending production at its factories in Sweden, the United States and Belgium, to curb the spread of the coronavirus, it said on Friday, even as it resumes manufacturing in China where the infection rate has slowed. Volvo's Swedish factories in Torslanda, Skovde, Olofstrom, and its U.S. plant in South Carolina will close between March 26 and April 14, the company said. Its plant in Ghent, Belgium has already been temporarily shut down.
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
(Bloomberg) -- Bank of America Corp. and UBS Group AG are among banks that Geely Automobile Holdings Ltd. has selected for its proposed merger with Swedish affiliate Volvo Cars, paving the way to create China’s first global carmaker.Geely is discussing different deal structures with the advisers, while Volvo is working with HSBC Holdings Plc on the potential transaction, said the people, asking not to be identified because the matter is private. Volatility in global markets, sparked by the novel coronavirus outbreak, could lead to delays, although the overall plans to combine remain unaffected, they said.The two companies, both controlled by Chinese billionaire Li Shufu’s closely held Geely Group, said in February that they had started discussions and the plan was for the combined entity to be listed in Hong Kong and Stockholm.No final decision has been made on details of the deal, including the timeline and size, and more banks could be added, the people said. Representatives for Bank of America, Geely, HSBC, UBS and Volvo declined to comment.The deal would unify the bulk of billionaire Li’s growing stable of automotive brands and create a company with annual revenue of more than $40 billion. Since the Chinese businessman bought Volvo Cars from Ford Motor Co in 2010, the company has doubled sales while growing rapidly in China and becoming the biggest maker of Chinese brand cars. Li, who is also Daimler AG’s largest shareholder, has championed consolidation as a way for automakers to pool resources for initiatives like electrification and automated driving.Geely, which has been the top-selling Chinese car brand for three consecutive years, has sought to move upmarket through closer cooperation with its Swedish sister company. The new entity would also comprise Lynk & Co., which makes cars using Volvo’s CMA platform, and Polestar, a joint-venture that aspires to take on Tesla Inc.’s Model 3 with its first all-electric model, announced last year.China’s car market, the world’s largest, probably hit a bottom last month and is set to gradually recover as the spread of the coronavirus slows in the country and consumers return to shopping, according to industry group China Association of Automobile Manufacturers. Demand is expected to recover starting this month and the industry may reach its “normal level” in the third quarter, Xu Haidong, a vice chief engineer at CAAM said.\--With assistance from Tian Ying and Aaron Kirchfeld.To contact the reporters on this story: Manuel Baigorri in Hong Kong at email@example.com;Vinicy Chan in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Fion Li at email@example.com, David Morris (News)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
China's Zhejiang Geely Holding Group said on Tuesday it was investing 2.27 billion yuan ($326 million) in a new satellite manufacturing plant, where it plans to build low-orbit satellites to provide more accurate data for self-driving cars. It aims to produce 500 satellites a year by around 2025, with around 300 highly-skilled staff, it said in a statement. Geely's technology development arm, Geely Technology Group, launched Geespace to research, launch, and operate low-orbit satellites in 2018.
China's Zhejiang Geely Holding Group said on Tuesday it was investing 2.27 billion yuan ($326 million) in a new satellite manufacturing plant, where it plans to build low-orbit satellites to provide more accurate data for self-driving cars. Geely, one of China's most internationally-known companies due to its investments in Daimler, Volvo and Proton, is building the facilities in Taizhou, where it has car plants. It aims to produce 500 satellites a year by around 2025, with around 300 highly-skilled staff, it said in a statement.
Premium electric vehicle brand Polestar said on Monday it has hired a former Volkswagen AG senior sales executive as its China president, as the Gothenburg-based automaker accelerates its sales push in the world's biggest auto market. The move comes as the brand ramps up production ahead of the start of deliveries of its mass-market Polestar 2 model later this year in China, where its main rivals include Tesla Inc , Nio Inc and BMW AG. Polestar became an independent electric car brand in 2017 with capital investment from Geely Auto Group and Swedish automaker Volvo Cars, both controlled by Zhejiang Geely Holding Group Co Ltd.
Retail sales of passenger cars in China crumbled 92% on an annual basis in the first 16 days of February, according to China Passenger Car Association (CPCA), as the coronavirus outbreak slammed the brakes on businesses across the country. China's passenger vehicle sales recorded 4,909 units in the first 16 days, down from 59,930 vehicles in the same period a year earlier, data from CPCA showed, the first major figures to demonstrate just how hard the epidemic is hitting the world's biggest auto market. Mainland China recorded 889 new confirmed cases of coronavirus infection on Thursday.
Chinese cities now look like ghost towns as coronavirus fears keep shoppers at home. That's hit businesses of all kinds - not least, it seems, car dealers. Auto sales in China - the world's largest market - tumbled 92% in the first half of February. That's according to figures from an industry group. Fewer than 5,000 vehicles were shifted during the period, compared to almost 60,000 in the same period last year. The slump has sparked innovation at some firms. Chinese automaker Geely has launched a new online shopping tool for its cars. The firm had previously sold vehicles through web platforms like Tmall and JD.com. Now for the first time it's doing so through its own web site. Looking further ahead, the slump should at least ease off. Over the first half, the Chinese Association of Automobile Manufacturers predicts a 10% decline on the year.
Chinese automaker Geely GEELY.UL has launched a service for customers to buy cars online and get them delivered directly to their homes, in a bid to drum up sales as the coronavirus outbreak prompts buyers to stay away from showrooms. Consumers can order and customize their cars on Geely's website, it said in a statement. The coronavirus has killed 2,236 people and stricken more than 75,400 in mainland China, and strict public health measures to contain its spread have severely disrupted business and consumer activity.
Today we are going to look at Geely Automobile Holdings Limited (HKG:175) to see whether it might be an attractive...
Moody's Investors Service explains in a newly published report, why a merger between Geely Automobile Holdings Limited (Geely, Baa3 stable) and Volvo Car AB (Volvo Car, Ba1 stable) - if approved by regulators and shareholders - would be credit positive. "Combining Geely's business with that of Volvo would strengthen both companies' business positions by significantly enlarging their operating scales, and bring about greater geographical and brand diversification," says Gerwin Ho, a Moody's Vice President and Senior Credit Officer.
(Bloomberg Opinion) -- Chinese billionaire Li Shufu is bringing his cash cow in-house. Let’s hope he doesn't milk it dry.Volvo Car AB and Hong Kong-listed Geely Automobile Holdings Ltd. have said in a statement that they’re considering merging their businesses in a combined entity that would tap capital markets through Hong Kong and Stockholm. The parent company that they share, Zhejiang Geely Holding Group Co., is run by the ambitious Mr. Li, who seems to be taking a big first step toward consolidating his sprawling holdings. Other moves, such as a spinoff, had already been signaled. In a bond prospectus dated November, Geely Automobile said that Volvo and the parent intended to merge operations into a standalone business to develop “next generation combustion engines and hybrid powertrains.” Volvo Car said this would clear the way for it to focus on developing all-electric premium vehicles.Li has spent billions buying or building stakes in the likes of Mercedes Benz-maker Daimler AG, Volvo AB and Lotus Cars Ltd. through to flying-car maker Terrafugia Inc. He was recently reported to be in the running to make an investment in Aston Martin Lagonda Global Holdings Plc. Until now, he’s kept them separate but under his holding company.Bringing the Swedish and Chinese car companies under the same umbrella makes sense at first glance. Volvo Car’s stable profits ($5.5 billion in 2019) could offset the tough terrain that Geely faces in China’s shrinking car market. The two already collaborate through a joint venture on the Lynk & Co. brand. Since the parent bought Volvo in 2010, Geely’s cars have received an upgrade after it set up the joint China-Euro Vehicle Technology AB research and development center. There’s also a case for cost sharing. Volvo is focused on the higher- and greener-end of the car spectrum. Geely hasn’t quite gotten there. That will help as China pushes forward with its electric car ambitions.The pair said in their statement that the merger would “accelerate financial and technological synergies” and create a strong global group. So, let’s talk about the finances. To build up his empire, Li has piled on leverage at the Zhejiang Geely holding company level. Net debt stood at $8.1 billion at the end of September, more than double from a year prior. It needs to service that debt while feeding and funding its ambitions. S&P Global Ratings expects the company’s leverage to increase this year as volumes and margins contract.Volvo has been a cash source for its parent. In 2019, Volvo paid out dividends of 2.9 billion kronor ($306 million), with 2.8 billion kronor of that to its parent. That was higher than the first dividends paid out in 2016. Volvo injected 1.15 billion kronor into another jointly-owned Geely brand, Polestar Group, last year. Related-party transactions with the Geely sphere of companies totaled 4.1 billion kronor in 2019. Geely has held up relative to its auto-making peers, but earnings have been shrinking as sales in the world’s largest car market deteriorate. Its ability to spend and stay ahead of the technology curve are also constrained. It shelled out $423 million on capital expenditures in the 12 months to June last year, compared to Volvo’s $1.25 billion in 2019. It’s clear who will be driving once they come together.The parent company will keep its firm grip. Through connected transactions, it holds the licenses that Geely uses to manufacture the cars in China. Because of this structure, Geely can make and sell cars there while holding 99% stakes in operating subsidiaries, despite its offshore incorporation, according to Moody’s Investors Service Inc. Li needs this merger to work. With the coronavirus potentially wreaking operational havoc, the parent company has to be in financial order. A blockbuster valuation will help fund his future ambitions in a tougher global auto industry and pay down the debt he’s built up. What better way than to create an improved asset in the new entity, give it a boost with your crown jewel, Volvo, and monetize it. A more valuable asset makes for better collateral. Li will look to maximize the efficiency of his capital.Geely, with an enterprise value of around $16 billion, trades at 7.2 times earnings before interest, tax, depreciation and amortization. It’s sitting on cash of around $2 billion and very little debt. Volvo generated $3.2 billion of Ebitda in 2019. Assuming a multiple of 2.5 times earnings, around that of other European carmakers, would value the Swedish company at around $8 billion. The valuation of the combined entity will be higher. Even two years ago, Volvo was looking for a valuation of double that on the lower end to as much as $30 billion when talk of going public alone surfaced. Wherever the valuation comes out and whatever shareholders are willing to digest, let’s hope there are indeed synergies and Geely isn’t drawing too much out of Volvo Cars. That may defeat the purpose of Li’s entire exercise.To contact the author of this story: Anjani Trivedi at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Geely and its sister company Volvo are planning to merge, listing in Hong Kong and possibly Stockholm. It would give Volvo access to public markets after it dropped plans to list its stock years ago. Merging the two units comes as global carmakers pursue alliances. They're joining forces in the push to switch to electric cars and autonomous vehicles. Shares in Geely jumped as much as 11.5% on Tuesday (February 11). Geely's parent company Zhejiang Geely Holding Group, bought Volvo from Ford in 2010. The new company will have five brands and products ranging from affordable sedans to luxury sports cars. It's not yet clear how much valuation would be added to Geely by injecting Volvo assets. Geely is currently a 16 billion dollar Hong Kong-listed company. Its sales started to surge from 2015 as its products began incorporating Volvo technology. It sold 1.36 million cars in 2019 and a has goal to sell 1.4 million cars this year. Volvo sold just over 700,000 cars last year.
Geely Automobile and its sister company Volvo Cars are planning to merge and list in Hong Kong and possibly Stockholm, giving Volvo access to public markets after it dropped a move to list its stock two years ago. Monday's move to merge the two units come as global automakers pursue alliances to respond better to the cost of switching to electric cars, tougher emission rules and autonomous driving. Zhejiang Geely Holding Group, Geely Automobile's parent, bought Volvo Cars from Ford Motor Co in 2010.
A combined company would preserve the distinct identity of each of the brands Volvo, Geely, Lynk & Co and Polestar, Volvo's electric brand. The two will create a joint working group to prepare a proposal for their respective boards.
Sweden's Volvo Car Group, owned by China's Geely, reported an 18% rise in fourth-quarter operating profit as cost cuts and growing sales more than offset the impact of subdued global auto markets. The Gothenburg-based carmaker, which Geely acquired from Ford in 2010, reported operating earnings of 5.29 billion Swedish crowns as revenues rose 8.4% to 79.2 billion. Sales of Volvos rose nearly 10% in 2019 — with growth of 23.4% in the fourth quarter alone — as increases in China and the United States and strong demand for a line of SUVs, its best-selling models, gave a boost.
Sweden's Volvo Car Group, owned by China's Geely, reported an 18% rise in fourth-quarter operating profit as cost cuts and growing sales more than offset the impact of subdued global auto markets. The Gothenburg-based carmaker, which Geely acquired from Ford Motor Co <F.N> in 2010, reported operating earnings of 5.29 billion Swedish crowns as revenues rose 8.4% to 79.2 billion. Sales of Volvos rose nearly 10% in 2019 - with growth of 23.4% in the fourth quarter alone - as increases in China and the United States and strong demand for a line of SUVs, its best-selling models, gave a boost.
Geely Automobile Holdings Limited (HKG:175) shareholders have seen the share price descend 18% over the month. But...
Li Chunrong was hired by Chinese automaker Geely to revive the fortunes of the Proton brand in Malaysia, and it took him two years to eclipse Japanese giants Honda and Toyota. Now he plans to take the fight across Southeast Asia and beyond. Li, appointed Proton CEO in 2017 when Geely acquired 49.9% of the company, has turned around a once-celebrated Malaysian marque that had to rely on state aid after a string of losses, with his success built on an aggressive cost-cutting drive.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Geely Automobile Holdings Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
(Bloomberg Opinion) -- Tianqi Lithium Corp. had everything going for it: generous subsidies, Beijing’s blessing on the electric-vehicle industry it supplies, and the hype of Tesla Inc. getting its sedans off the production line in China. The only thing interrupting this nice fairy tale is the reality of demand and making money.Over the past few years, China has supported its electric-car industry by doling out large subsidies; giving preferential treatment to domestic companies; and providing large outlays for charging infrastructure. The sector has surged as a result. The kickoff of Tesla’s Model 3 in Shanghai last month sparked a fresh rally among producers of lithium – a key ingredient in batteries – and other suppliers.All this is excitement is bubbling away despite the cratering of the lithium market. After peaking more than a year and a half ago, prices have slumped over 50% and inventories have piled up. The glut, a problem China knows all too well, has weighed on producers.This reality is starting to settle in for Tianqi Lithum. Earlier this week, the company canceled its bondholder meeting as worries about repaying investors 318 million yuan ($46 million) in principal and interest loomed. Its bonds fell to just over 64 cents on the dollar from around 75 cents days earlier.While China reported its first monthly slump in electric-vehicle purchases in July, Tianqi Lithium was struggling before then. The world’s second-largest producer reported its first quarterly loss in almost six years years in September, following two quarters of declining net income.Like many fad-commodity producers before it, Tianqi Lithium is seeing the painful consequences of China’s supply and demand mismatch. The adoption of electric cars and progress on battery technology have both been slower than anticipated. Expectations were so far off the mark that despite lithium prices falling, analysts adjusted higher their estimates for the average selling price of batteries last year.Tianqi Lithium booked a 63% increase in government subsidies in the nine months to September as non-operating income from a year earlier. The government's supportive rhetoric also led the company to pile on debt as it sought stakes in Chile’s Sociedad Quimica y Minera de Chile SA and an Australian lithium mine. The company eventually financed its way to commanding a 16% share of global lithium production; but now its balance sheet looks bloated and questions about the company’s ability to refinance its debt – and at what cost – are becoming more pressing.For all the hopes pegged to its expansion and profitability, Tianqi Lithium didn’t have enough cash to cover the 3.1 billion yuan of short-term debt it owes as of September. The company has already tapped various channels of funding, from medium-term notes to an equity raising. When Moody’s Investors Service downgraded the company last month, it cited Tianqi Lithium’s inability to raise enough capital through its rights offering, saying it would have trouble deleveraging.Expectations for the electric-car industry are starting to recalibrate. With targeted subsidies shifting from cars to batteries and infrastructure, the bargaining power has moved from manufacturers of one to the other. The likes of Geely Automobile Holdings Ltd., BMW AG and Volkswagen AG are locking in long-term contracts and partnerships with battery makers, but these car giants are no longer calling the shots.Battery makers nevertheless face their share of challenges: They haven’t quite figured out how to advance technology safely, while bringing down prices and preserving margins. Any reduction in subsidies will pass through to suppliers as well. It may be time for a more realistic reassessment.Tianqi Lithium may be able to keep rolling over its debt, but that doesn’t change the fact that we’re still years away from widespread adoption of electric cars. A few thousand Teslas on the streets of China isn’t going to change that. EV suppliers may be better served keeping an eye on their balance sheets than Elon Musk’s production line.To contact the author of this story: Anjani Trivedi at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. To keep it practical...
BEIJING/SHANGHAI (Reuters) - Mercedes-Benz will build smart-branded electric cars with Zhejiang Geely Holding Group in the Chinese city of Xian from a base with annual capacity of around 150,000 vehicles, a senior official from its German parent Daimler AG said on Saturday. Daimler's Executive Vice President in China Leng Yan made the comments to Reuters on the sidelines of China's EV100 forum in Beijing, an annual event where senior auto industry executives meet to discuss policies and the market. Geely and Mercedes-Benz said on Wednesday they would each invest 2.7 billion yuan ($388.8 million) in a China-based venture to build "premium and intelligent electrified" vehicles under the Smart brand.