Geely Auto: Progress Goes Unrewarded As Investors Fret Over The Health Of China's Market
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Stephen Simpson20.55K FollowersFollow5ShareSavePlay(9min)CommentsSummaryGeely Auto (GELYF) has been outpacing a slowing Chinese auto market, delivering 42% YTD unit sales growth versus the sector's 11.5% and climbing to over 11% share.GELYF's margin expansion persists despite 12% ASP declines, with Q3 gross margin at 16.6% and operating margin at 4.1%.Export growth is a key 2026–2027 catalyst, with management targeting 50%+ export revenue growth and 1M units exported by 2027.Valuation remains attractive: 15% five-year revenue CAGR and 4–5% FCF margins support ADR upside toward $59–$60, though governance and macroeconomic risks persist. Dmitry Presnyakov/iStock Editorial via Getty Images I can understand why investors are nervous about China’s automotive sector. Consumer spending has been lackluster all year and has been getting worse of late, and it stands to reason that if consumers aren’t feeling great about the economy, big-ticket expenditures are goingThis article was written byStephen Simpson20.55K FollowersFollowStephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.