Jeffery: Maintain Geely (0175. HK) Buy rating with a target price of HK$30.1

Geely (0175.HK) 2021 total sales increased by 1% year-on-year to 1.33 million units, reaching 87% of the original target of 1.53 million vehicles, while Geely's target for 1.65 million vehicles this year means a year-on-year increase of 24%, higher than the industry's 10% growth forecast.

However, taking into account the rising battery prices, pushing down gross margins, and supply disruptions due to the outbreak in Ningbo and Xi'an, the bank lowered Geely's 2021/22 earnings forecast to RMB6.5 billion and RMB9.5 billion, while lowering its price target from HK$35.6 to HK$30.1, maintaining a "buy" rating.