Equity Research | Consumer Discretionary Feb 9, 2018 Geely Auto (175 HK) Buy (maintained) Sales momentum continues in Jan Target price: HK$33.29 Sales momentum continued in Jan Geely Auto sold 155,089 passenger vehicles in Jan, up 51.1% YoY and 1% MoM, a continuation of its sales momentum following the 4Q17 Chongjing Deng peak season. The company exported 1,054 units during the month, up 6% YoY, similar SFC CE No. BEY953 to the monthly average during 2017 (937 units). Domestic sales came in at 154,035 units.
[email protected] +86 20 8757 6482 Continued ramp-up for the Lynk 01 6,173 Lynk 01 units were sold in Jan, as the model continued its ramp-up since launch at the end of Nov last year, with units sales up 2.7% compared with its first sales figure in Dec. We are encouraged by the results, particularly GF Securities (Hong Kong) Brokerage Limited as Jan typically sees low sales. We think Lynk & Co’s 01 model offers fashionable design, 29-30/F, Li Po Chun Chambers 189 Des Voeux Road Central while its MSRP of Rmb155,880 as well as technology from Volvo make it good value for Hong Kong buyers. Production capacity for the brand at its plants in Luqiao and Zhangjiakou is improving, which the company believes will drive sales. We estimate the launch of the Lynk 02 and 03 models will mean the brand can sell ~160,000 units in 2018. Sedan sales up steadily Geely sold 92,114 sedans in Jan, up 48.7% YoY and 7.6% MoM, which is a good start to 2018.