吉利上半年營運令人滿意 - 中銀國際

Geely Automobile 
Satisfactory business operation in 1H18 

During Geely Investors’ Day on June 29-30, we visited Lynk & Co’s Zhangjiakou Plant, watched Lynk & Co 02’s launch ceremony and attended a management meeting. We gathered that Geely’s 1H18 operations may have been better than the market expected, given: (i) revenue growth has been higher than sales volume growth; (ii) the solid margin performance; and (iii) the Lynk & Co JV already made profit in 1H18. Looking into 2H18, Geely will accelerate new model launches, including FE-6/SX11/NL-5/MPV under the Geely brand and 03 coupled with PHEV versions of 01/02/03 under the Lynk & Co brand. Overall, we believe Geely will continuously introduce competitive new models and enrich its product layout in respective segments. Besides meeting the existing demand, the company is also dedicated to creating demand in new sub-markets. As such, we expect it to further gain market share amid the intensified competition. Reiterate BUY with TP of HK$31.00.