Daiwa Raises Price Target for GEELY AUTO (00175.HK) to $24.5, Maintains Buy Rating
Updated Sales Forecast: Daiwa has revised its sales volume forecast for GEELY AUTO from 1.9-2.3 million units to 3-3.8 million units for 2025-2027 following the company's 1H25 results announcement.
Positive Outlook and Rating: The broker remains optimistic about GEELY AUTO's transition to NEV and overseas expansion, maintaining a Buy rating and increasing the target price from $14 to $24.5 due to expected profit improvements and cost savings.
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<Research>BOCI Anticipates Manageable Cost Pressures for GEELY AUTO (00175.HK), Lowers Target Price to $30, Maintains Buy Rating
Sales Performance: GEELY AUTO recorded approximately 270,200 wholesale units in January, marking a 1.3% year-over-year increase and a 14.1% quarter-over-quarter increase, driven by deferred wholesale volumes and strong export growth.
Profit Outlook: Despite expected revenue growth in 4Q25, profits may decline due to higher year-end expenses and potential recall provisions for early Zeeker models, with core net profit estimated between RMB3.5 billion and RMB3.8 billion.
Cost Management: BOCI anticipates manageable cost pressures for GEELY AUTO in 2026, with an annual cost reduction target exceeding 10%, which should help maintain vehicle profitability amid rising raw material costs.
Target Price Adjustment: Following the equity dilution from Zeekr's privatization, BOCI has lowered its target price for GEELY AUTO to $30 while maintaining a "Buy" rating, noting the current valuation is at a discount compared to peers.
HSI Rises by 220 Points; Gold, Silver, and Resource Stocks Recover; HSBC Holdings and NTES-S Surge
Market Opening Performance: The HSI opened 220 points higher at 26,995, with the HSCEI and HSTECH also showing gains of 0.6% and 0.7%, respectively.
Commodity and Mining Stocks: Mining stocks like CHINAGOLDINTL and ZIJIN MINING saw significant increases, with short selling ratios indicating active trading, while other commodities also trended upward.
Financial Sector Highlights: HSBC HOLDINGS rose 3% following positive forecasts from BNP Paribas, while AIA and HKEX experienced modest gains, reflecting a stable financial market.
Tech and Automotive Stocks: Mixed performance in tech stocks, with TENCENT declining slightly, while NTES-S and NEW ORIENTAL-S saw notable increases; automotive stocks like BYD and NIO faced declines amid high short selling ratios.
<Research>BOCI Lowers GWMOTOR's Rating to Sell and Reduces Target Price to HKD9.5
Revenue and Profit Decline: GWMOTOR's 4Q25 revenue increased by 13% QoQ to RMB69.2 billion, but net profit fell by 44% QoQ to RMB1.3 billion, significantly below expectations due to seasonal bonuses, low sales efficiency, and reduced tax rebates in Russia.
Operational Challenges: BOCI highlighted that GWMOTOR's extensive direct sales network and unclear sales prospects may hinder operational efficiency, posing significant risks to earnings.
Market Position in NEV: Despite efforts in new energy vehicle (NEV) sales, GWMOTOR is trailing behind competitors like GEELY AUTO and CHERY AUTO in market share and NEV transition.
Rating Downgrade: BOCI has downgraded GWMOTOR's rating from Hold to Sell and reduced its target price from HKD16 to HKD9.5.
<Full-day Summary> HSI Falls 580 Points; HSTI Declines 122 Points; CCB and XIAOMI Drop Over 3%; NEW ORIENTAL, SHK PPT, HUABAO INTL, ZOOMLION, and HANG LUNG GROUP Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 580 points (2.1%) to 27,387, with significant declines in other indices, including HSTI and HSCEI, and a market turnover of $301.61 billion.
Active Heavyweights: Major stocks like CCB, Xiaomi, Tencent, and Alibaba experienced notable declines, with short selling ratios indicating increased market activity against these stocks.
Significant Declines: CSPC Pharma, Chinahongqiao, and Zijin Mining saw substantial drops of over 9%, reflecting a broader trend of falling stock prices among HSI and HSCEI constituents.
Gainers and New Highs: New Oriental and Huabao International were among the few gainers, with New Oriental hitting a new high, while several other stocks, including SD Gold and Jiangxi Copper, faced significant losses.
Citi Supports BYD COMPANY/ PONY-W, Outlines 5 Advantages and Obstacles for China's Automotive Sector
Citi's Outlook on Chinese Carmakers: Citi has a neutral outlook for Chinese carmakers in 1Q26, predicting that BYD, Geely, and Leapmotor may outperform the market due to model updates and strong export growth, while others like Seres and Li Auto may struggle with profit margins and weak sales.
Industry Challenges and Tailwinds: The Chinese auto industry is expected to face five major tailwinds, including increased EV market share and export growth, but also five challenges such as rising costs and cautious retail growth for EVs, leading to a potential decline in wholesale and retail forecasts for FY26.
Stock Recommendations: Citi has recommended several stocks, including BYD, Pony, WeRide, Hesai, Minth Group, and Weichai Power, amidst a backdrop of short selling activity and varying market performance.
Market Conditions: The report highlights a potential end to the price war in passenger vehicles and a favorable phase for commercial vehicle demand, while also noting high inventory levels of fuel vehicles as a concern for the market.
<Midday Update> HSI Falls by 498 Points; HSTI Declines by 105 Points; CSPC PHARMA Drops Over 12%; SHK PPT and HUABAO INTL Reach New Peaks
Market Performance: The Hang Seng Index (HSI) fell by 498 points (1.8%) to 27,469, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 1.8% and 2.1%, respectively.
Active Heavyweights: Major stocks like Xiaomi, Alibaba, and Tencent saw significant drops, with Xiaomi down 2.7%, Alibaba down 2.7%, and Tencent down 1.5%, alongside substantial short selling activity.
Notable Declines: CSPC Pharma and Zijin Mining faced sharp declines of 12.5% and 8.6%, respectively, with high short selling ratios indicating bearish market sentiment.
Gainers and New Highs: New Oriental and Huabao International were among the few gainers, with New Oriental up 3.6% and Huabao hitting a new high with a 6.2% increase.
<Research>BOCI Anticipates Manageable Cost Pressures for GEELY AUTO (00175.HK), Lowers Target Price to $30, Maintains Buy Rating
Sales Performance: GEELY AUTO recorded approximately 270,200 wholesale units in January, marking a 1.3% year-over-year increase and a 14.1% quarter-over-quarter increase, driven by deferred wholesale volumes and strong export growth.
Profit Outlook: Despite expected revenue growth in 4Q25, profits may decline due to higher year-end expenses and potential recall provisions for early Zeeker models, with core net profit estimated between RMB3.5 billion and RMB3.8 billion.
Cost Management: BOCI anticipates manageable cost pressures for GEELY AUTO in 2026, with an annual cost reduction target exceeding 10%, which should help maintain vehicle profitability amid rising raw material costs.
Target Price Adjustment: Following the equity dilution from Zeekr's privatization, BOCI has lowered its target price for GEELY AUTO to $30 while maintaining a "Buy" rating, noting the current valuation is at a discount compared to peers.
HSI Rises by 220 Points; Gold, Silver, and Resource Stocks Recover; HSBC Holdings and NTES-S Surge
Market Opening Performance: The HSI opened 220 points higher at 26,995, with the HSCEI and HSTECH also showing gains of 0.6% and 0.7%, respectively.
Commodity and Mining Stocks: Mining stocks like CHINAGOLDINTL and ZIJIN MINING saw significant increases, with short selling ratios indicating active trading, while other commodities also trended upward.
Financial Sector Highlights: HSBC HOLDINGS rose 3% following positive forecasts from BNP Paribas, while AIA and HKEX experienced modest gains, reflecting a stable financial market.
Tech and Automotive Stocks: Mixed performance in tech stocks, with TENCENT declining slightly, while NTES-S and NEW ORIENTAL-S saw notable increases; automotive stocks like BYD and NIO faced declines amid high short selling ratios.
<Research>BOCI Lowers GWMOTOR's Rating to Sell and Reduces Target Price to HKD9.5
Revenue and Profit Decline: GWMOTOR's 4Q25 revenue increased by 13% QoQ to RMB69.2 billion, but net profit fell by 44% QoQ to RMB1.3 billion, significantly below expectations due to seasonal bonuses, low sales efficiency, and reduced tax rebates in Russia.
Operational Challenges: BOCI highlighted that GWMOTOR's extensive direct sales network and unclear sales prospects may hinder operational efficiency, posing significant risks to earnings.
Market Position in NEV: Despite efforts in new energy vehicle (NEV) sales, GWMOTOR is trailing behind competitors like GEELY AUTO and CHERY AUTO in market share and NEV transition.
Rating Downgrade: BOCI has downgraded GWMOTOR's rating from Hold to Sell and reduced its target price from HKD16 to HKD9.5.
<Full-day Summary> HSI Falls 580 Points; HSTI Declines 122 Points; CCB and XIAOMI Drop Over 3%; NEW ORIENTAL, SHK PPT, HUABAO INTL, ZOOMLION, and HANG LUNG GROUP Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 580 points (2.1%) to 27,387, with significant declines in other indices, including HSTI and HSCEI, and a market turnover of $301.61 billion.
Active Heavyweights: Major stocks like CCB, Xiaomi, Tencent, and Alibaba experienced notable declines, with short selling ratios indicating increased market activity against these stocks.
Significant Declines: CSPC Pharma, Chinahongqiao, and Zijin Mining saw substantial drops of over 9%, reflecting a broader trend of falling stock prices among HSI and HSCEI constituents.
Gainers and New Highs: New Oriental and Huabao International were among the few gainers, with New Oriental hitting a new high, while several other stocks, including SD Gold and Jiangxi Copper, faced significant losses.
Citi Supports BYD COMPANY/ PONY-W, Outlines 5 Advantages and Obstacles for China's Automotive Sector
Citi's Outlook on Chinese Carmakers: Citi has a neutral outlook for Chinese carmakers in 1Q26, predicting that BYD, Geely, and Leapmotor may outperform the market due to model updates and strong export growth, while others like Seres and Li Auto may struggle with profit margins and weak sales.
Industry Challenges and Tailwinds: The Chinese auto industry is expected to face five major tailwinds, including increased EV market share and export growth, but also five challenges such as rising costs and cautious retail growth for EVs, leading to a potential decline in wholesale and retail forecasts for FY26.
Stock Recommendations: Citi has recommended several stocks, including BYD, Pony, WeRide, Hesai, Minth Group, and Weichai Power, amidst a backdrop of short selling activity and varying market performance.
Market Conditions: The report highlights a potential end to the price war in passenger vehicles and a favorable phase for commercial vehicle demand, while also noting high inventory levels of fuel vehicles as a concern for the market.
<Midday Update> HSI Falls by 498 Points; HSTI Declines by 105 Points; CSPC PHARMA Drops Over 12%; SHK PPT and HUABAO INTL Reach New Peaks
Market Performance: The Hang Seng Index (HSI) fell by 498 points (1.8%) to 27,469, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 1.8% and 2.1%, respectively.
Active Heavyweights: Major stocks like Xiaomi, Alibaba, and Tencent saw significant drops, with Xiaomi down 2.7%, Alibaba down 2.7%, and Tencent down 1.5%, alongside substantial short selling activity.
Notable Declines: CSPC Pharma and Zijin Mining faced sharp declines of 12.5% and 8.6%, respectively, with high short selling ratios indicating bearish market sentiment.
Gainers and New Highs: New Oriental and Huabao International were among the few gainers, with New Oriental up 3.6% and Huabao hitting a new high with a 6.2% increase.
