Citi: Maintain a buy rating target of HK $52.77 on Geely (0175.HK)

2022-09-17 0 By

Citi issued a report said, and Geely (0175.HK) brand Krypton (Zeekr) chief financial officer Yuan Jing investor meeting, Ji Krypton this year to transport 70,000 cars, to 2025 to transport the target of 65 cars, and refers to the short-term plan at least 2 new models, refers to the rapid growth of the volume,However, under the influence of many factors, the index will not achieve the internal target of the group.Management of Geely’s Gekrypton unit, when asked about the reason for the stull in sales and delivery growth, pointed to a chip supply bottleneck, with limited supply of alternative chips becoming a more important reason, as well as the fact that deliveries have only started about nine weeks ago.Based on current resource levels, Kikrypton management is expected to miss its monthly production and sales target of 7,000 to 8,000 units by March of this year. Kikrypton management is expected to see relief in pneumatic suspension supply by the second quarter of 2022. As for the impact of rising battery costs,Management confirmed that the expected impact of higher battery costs could be raised from 10% to 30% in the range.Citi maintained its’ buy ‘rating and hk $52.77 price target on Geely.