Geely stock steadies as higher 2024 sales and profit targets follow strong 2023 recovery

Geely stock, tied to Geely Automobile Holdings Limited (ISIN HK0175000941) on the Hong Kong Stock Exchange, tracks an automaker that has returned to profit growth with revenue around CNY 179 billion and net income up roughly one third year on year in fiscal 2023, according to company disclosures and major financial data portals as of early 2024.

Revenue around CNY 179 billion in 2023

According to publicly available 2023 full year figures from Geely Automobile Holdings, which are summarized across leading financial information providers, the group generated revenue of roughly CNY 179 billion in fiscal 2023, compared with about CNY 148 billion in 2022, indicating an increase in the order of 20 percent year on year as the company sold more vehicles and broadened its product mix.

The same compiled data show that Geelys net profit attributable to shareholders in 2023 rose to around CNY 5.3 billion, up from approximately CNY 4.0 billion in 2022, which represents growth of roughly one third year on year and reflects better pricing, cost discipline, and an improving model mix with more electrified vehicles.

Vehicle sales and margin trends

For 2023, consolidated vehicle sales reported for Geely Automobile amounted to roughly 1.7 million units, an increase from about 1.4 million units in 2022, implying growth on the order of 20 percent and placing the company among the larger Chinese passenger vehicle producers by unit volume.

Industry data aggregations indicate that the companys gross margin in 2023 moved toward the low to mid teens in percentage terms, compared with a high single digit level in 2022, helped by greater scale and a higher proportion of plug in hybrid and battery electric models, even as pricing pressure in the Chinese market remained intense.

Focus on electrified models and Lynk and Co

Geelys growth in 2023 was driven in part by increased penetration of its electrified models under brands such as Lynk and Co and Geometry, with industry reports indicating that new energy vehicles accounted for a growing share of total sales and helped support average selling prices.

The Lynk and Co line, developed jointly with Volvo Cars, is positioned as a mid to high end offering within Geelys portfolio and targets younger urban customers, while also supporting export opportunities into Europe and other international markets through subscription based and traditional sales channels.

Market context and valuation

On the Hong Kong Stock Exchange, Geely stock trades in Hong Kong dollars and reflects investors views on the companys ability to compete in Chinas crowded auto market against both domestic peers and global manufacturers, with valuation metrics such as the price to earnings ratio referencing the 2023 net profit of roughly CNY 5.3 billion.

Market capitalization figures compiled by financial portals in early 2024 place Geely Automobile in the range of tens of billions of Hong Kong dollars, giving it a meaningful weight within the Hong Kong market and classifying it as a large cap name in the context of Chinese automakers.

Representative model: Geely Emgrand

One of Geelys representative models is the Geely Emgrand, a compact sedan that has been offered in both internal combustion and electrified variants and has contributed to the companys volume base in China and selected export markets. The Emgrand series, along with crossovers and SUVs under the main Geely brand, forms part of the product foundation that underpins the companys 2023 revenue of roughly CNY 179 billion and the growth in unit sales of about 20 percent year on year.

Geely stock as Hong Kong listed auto exposure

Geely stock offers exposure to Chinas passenger vehicle market and to the transition toward electrified powertrains through a Hong Kong listed security denominated in Hong Kong dollars. For investors monitoring the sector, the companys 2023 revenue of around CNY 179 billion and net profit of about CNY 5.3 billion, both up from 2022, as well as the increase in vehicle sales to roughly 1.7 million units, are key reference points when assessing its position among listed Chinese automakers.