Geely Automobile Holdings (SEHK:175) Could Be 42% Below Fair Value On Its EV Growth Story

Recent Share Performance and Business Snapshot

Geely Automobile Holdings (SEHK:175) has drawn attention after a period in which the stock declined over the past week, month, and past 3 months, prompting investors to reassess recent performance and fundamentals.

The company, headquartered in Hong Kong and focused on passenger vehicles, parts, and electric mobility products under the ZEEKR brand, reports annual revenue of CN¥356,316.201 and net income of CN¥15,345.231.

See our latest analysis for Geely Automobile Holdings.

At the latest share price of HK$17.06, Geely Automobile Holdings has seen its short term share price momentum fade, with the stock down 8.23% over the past week and 18.37% over the past 3 months. However, the 1 year total shareholder return of 9.58% and 3 year total shareholder return of 91.17% point to a much stronger longer term picture than recent trading suggests.

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With Geely Automobile Holdings trading below some valuation estimates yet showing mixed share performance, the key question for you is simple: is this recent pullback a potential entry point, or is the market already pricing in future growth?

Most Popular Narrative: 41.7% Undervalued

On the latest numbers, the most followed narrative values Geely Automobile Holdings at HK$29.27 per share versus a last close of HK$17.06, framing the stock as materially undervalued based on its long term earnings and revenue assumptions.

Geely’s strategy of launching 10 new NEV models in 2025 and continuing global expansion is likely to impact revenue positively by increasing market penetration and sales volume. The integration of smart driving technologies, including AI applications and autonomous driving features, is expected to enhance the product offering, potentially leading to higher average selling prices and improved net margins.

Read the complete narrative.

Curious what kind of revenue trajectory, margin uplift and future earnings multiple would need to line up to support that gap between HK$17.06 and HK$29.27? This narrative runs through detailed forecasts on growth, profitability and valuation assumptions, all discounted back using a 10.66% rate, and ties them directly to the fair value estimate.

Result: Fair Value of HK$29.27 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this Geely Automobile Holdings narrative could be challenged if intense NEV competition compresses margins or if integrating Zeekr and Lynk & Co fails to deliver expected efficiencies.

Find out about the key risks to this Geely Automobile Holdings narrative.

Next Steps

With mixed sentiment around Geely Automobile Holdings, the most useful step now is to look at the numbers yourself and move quickly to form your own view based on 4 key rewards and 1 important warning sign

Looking for more investment ideas beyond Geely Automobile Holdings?

If Geely Automobile Holdings is already on your radar, do not stop there. Broaden your watchlist with other focused ideas that could sharpen your next move.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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