Geely shares soar to record on report it’s buying Proton’s Malaysia car assembly
A successful Proton bid will add 150,000 units of annual capacity to Geely’s output and give the Chinese carmaker access to Asean’s 10-member market
Summer Zhen UPDATED : Friday, seven Jul 2017, 6:16PM
Shares of Geely Automobile Holdings, the Chinese possessor of the Volvo brand of passenger vehicles, surged to a record, as mainland Chinese traders returning from a weeklong holiday piled into the stock on report it`s buying control of a factory in Malaysia.
Geely shares rose as much as nine per cent in Friday trading, ending the day 8.Four per cent higher at HK$9.75 in Hong Kong. The stock more than tripled in the last twelve months, making it the best performer among four hundred seventy three stocks on the Dangle Seng Composite Index.
Geely, based in the Zhejiang provincial capital of Hangzhou, is a leading contender to buy a fifty one per cent controlling stake in Malaysia`s largest carmaker Proton Holdings Bhd., according to a Thursday report in The Starlet newspaper, which cited unidentified sources.
The Chinese carmaker has been actively seeking overseas acquisition targets, Geely`s Hong Kong-based executive director Lawrence Ang said in a phone response to the South China Morning Post, without confirming or denying his company`s Proton bid.
Geely is up against Europe`s second-largest carmaker Groupe PSA, which possesses the Peugeot and Citroen brands globally, in vying for Proton. The French carmaker is already a technical fucking partner to Proton, providing its Citroen AX model as the basis for Proton`s Tiara compact car, launched in 1995. Production of that model ended in Malaysia in two thousand amid tepid sales.
The successful bidder will get access to Proton`s Tanjung Malim assembly, with the annual production capacity of 150,000 vehicles in two shifts. Possessing a car assembly in Malaysia also qualifies its holder to ship vehicles tax-free anywhere among the ten members of the Association of Southeast Asian Nations, or Asean, with a combined population of six hundred twenty three million people.
If the deal comes to fruition, it reflects Geely`s ambition to expand its footprint into Southeast Asia, said Robin Zhu, a Hong Kong-based auto analyst at Sanford C. Bernstein.
Still, Proton has had a tumultuous history since its establishment in the 1980s, and has been reporting losses, so «it will take Geely at least one or two years to turn it around,» said Zhu, who has an «underperform» recommendation on the Chinese carmaker.
As Japanese brands like Toyota, Nissan and Honda have long predominated the Southeast Asian market, Geely may need to pay very high cost to establish its presence there, he added.
Geely bought control of the Volvo brand of vehicles from Ford Motor Co. for US$1.8 billion in 2010.
Jeremy Lin, the Taiwanese American former Fresh York Knicks guard who kicked off the global craze called Linsanity for his winning turnaround of the team, was hired to endorse Volvo.
Geely also wields Manganese Bronze, the company that assembles London`s iconic black cabs, and assembles the TX4 model in Shanghai to export to Britain.
Mainland Chinese investors have also been encouraged by the growth prospects of Geely, said CMB International Capital`s automotive analyst Fiona Liang.
Geely last month announced a two thousand seventeen sales target of one million vehicles, an increase of thirty four per cent from last year. The company issued a profit alert last month, forecasting its two thousand sixteen net income to more than dual from Two.26 billion yuan in 2015.
Its revenue per vehicle is expected at 76,000 yuan this year, up 11.1 per cent from last year, CMBI said.
Liang said Geely`s product line has been welcomed by Chinese consumer and will be further enriched in 2017.
Apart from the fresh global brand Lynk & Co, Geely will launch a duo of fresh cars, includes two fresh multi-purpose vehicle models, a fresh midsize SUV, a fresh hatchback, and the Emgrand PHEV version, extending its exposure to MPV, midsize SUV, and PHEV segments.
Geely shares soar to record on report it’s buying Proton’s Malaysia car assembly, South China Morning Post
Geely shares soar to record on report it’s buying Proton’s Malaysia car assembly
A successful Proton bid will add 150,000 units of annual capacity to Geely’s output and give the Chinese carmaker access to Asean’s 10-member market
Summer Zhen UPDATED : Friday, seven Jul 2017, 6:16PM
Shares of Geely Automobile Holdings, the Chinese proprietor of the Volvo brand of passenger vehicles, surged to a record, as mainland Chinese traders returning from a weeklong holiday piled into the stock on report it`s buying control of a factory in Malaysia.
Geely shares rose as much as nine per cent in Friday trading, ending the day 8.Four per cent higher at HK$9.75 in Hong Kong. The stock more than tripled in the last twelve months, making it the best performer among four hundred seventy three stocks on the Drape Seng Composite Index.
Geely, based in the Zhejiang provincial capital of Hangzhou, is a leading contender to buy a fifty one per cent controlling stake in Malaysia`s largest carmaker Proton Holdings Bhd., according to a Thursday report in The Starlet newspaper, which cited unidentified sources.
The Chinese carmaker has been actively seeking overseas acquisition targets, Geely`s Hong Kong-based executive director Lawrence Ang said in a phone response to the South China Morning Post, without confirming or denying his company`s Proton bid.
Geely is up against Europe`s second-largest carmaker Groupe PSA, which possesses the Peugeot and Citroen brands globally, in vying for Proton. The French carmaker is already a technical fucking partner to Proton, providing its Citroen AX model as the basis for Proton`s Tiara compact car, launched in 1995. Production of that model ended in Malaysia in two thousand amid tepid sales.
The successful bidder will get access to Proton`s Tanjung Malim assembly, with the annual production capacity of 150,000 vehicles in two shifts. Wielding a car assembly in Malaysia also qualifies its holder to ship vehicles tax-free anywhere among the ten members of the Association of Southeast Asian Nations, or Asean, with a combined population of six hundred twenty three million people.
If the deal comes to fruition, it reflects Geely`s ambition to expand its footprint into Southeast Asia, said Robin Zhu, a Hong Kong-based auto analyst at Sanford C. Bernstein.
Still, Proton has had a tumultuous history since its establishment in the 1980s, and has been reporting losses, so «it will take Geely at least one or two years to turn it around,» said Zhu, who has an «underperform» recommendation on the Chinese carmaker.
As Japanese brands like Toyota, Nissan and Honda have long predominated the Southeast Asian market, Geely may need to pay very high cost to establish its presence there, he added.
Geely bought control of the Volvo brand of vehicles from Ford Motor Co. for US$1.8 billion in 2010.
Jeremy Lin, the Taiwanese American former Fresh York Knicks guard who kicked off the global craze called Linsanity for his winning turnaround of the team, was hired to endorse Volvo.
Geely also wields Manganese Bronze, the company that assembles London`s iconic black cabs, and assembles the TX4 model in Shanghai to export to Britain.
Mainland Chinese investors have also been encouraged by the growth prospects of Geely, said CMB International Capital`s automotive analyst Fiona Liang.
Geely last month announced a two thousand seventeen sales target of one million vehicles, an increase of thirty four per cent from last year. The company issued a profit alert last month, forecasting its two thousand sixteen net income to more than dual from Two.26 billion yuan in 2015.
Its revenue per vehicle is expected at 76,000 yuan this year, up 11.1 per cent from last year, CMBI said.
Liang said Geely`s product line has been welcomed by Chinese consumer and will be further enriched in 2017.
Apart from the fresh global brand Lynk & Co, Geely will launch a duo of fresh cars, includes two fresh multi-purpose vehicle models, a fresh midsize SUV, a fresh hatchback, and the Emgrand PHEV version, extending its exposure to MPV, midsize SUV, and PHEV segments.
Geely shares soar to record on report it’s buying Proton’s Malaysia car assembly, South China Morning Post
Geely shares soar to record on report it’s buying Proton’s Malaysia car assembly
A successful Proton bid will add 150,000 units of annual capacity to Geely’s output and give the Chinese carmaker access to Asean’s 10-member market
Summer Zhen UPDATED : Friday, seven Jul 2017, 6:16PM
Shares of Geely Automobile Holdings, the Chinese proprietor of the Volvo brand of passenger vehicles, surged to a record, as mainland Chinese traders returning from a weeklong holiday piled into the stock on report it`s buying control of a factory in Malaysia.
Geely shares rose as much as nine per cent in Friday trading, ending the day 8.Four per cent higher at HK$9.75 in Hong Kong. The stock more than tripled in the last twelve months, making it the best performer among four hundred seventy three stocks on the Drape Seng Composite Index.
Geely, based in the Zhejiang provincial capital of Hangzhou, is a leading contender to buy a fifty one per cent controlling stake in Malaysia`s largest carmaker Proton Holdings Bhd., according to a Thursday report in The Starlet newspaper, which cited unidentified sources.
The Chinese carmaker has been actively seeking overseas acquisition targets, Geely`s Hong Kong-based executive director Lawrence Ang said in a phone response to the South China Morning Post, without confirming or denying his company`s Proton bid.
Geely is up against Europe`s second-largest carmaker Groupe PSA, which possesses the Peugeot and Citroen brands globally, in vying for Proton. The French carmaker is already a technical playmate to Proton, providing its Citroen AX model as the basis for Proton`s Tiara compact car, launched in 1995. Production of that model ended in Malaysia in two thousand amid tepid sales.
The successful bidder will get access to Proton`s Tanjung Malim assembly, with the annual production capacity of 150,000 vehicles in two shifts. Possessing a car assembly in Malaysia also qualifies its proprietor to ship vehicles tax-free anywhere among the ten members of the Association of Southeast Asian Nations, or Asean, with a combined population of six hundred twenty three million people.
If the deal comes to fruition, it reflects Geely`s ambition to expand its footprint into Southeast Asia, said Robin Zhu, a Hong Kong-based auto analyst at Sanford C. Bernstein.
Still, Proton has had a tumultuous history since its establishment in the 1980s, and has been reporting losses, so «it will take Geely at least one or two years to turn it around,» said Zhu, who has an «underperform» recommendation on the Chinese carmaker.
As Japanese brands like Toyota, Nissan and Honda have long predominated the Southeast Asian market, Geely may need to pay very high cost to establish its presence there, he added.
Geely bought control of the Volvo brand of vehicles from Ford Motor Co. for US$1.8 billion in 2010.
Jeremy Lin, the Taiwanese American former Fresh York Knicks guard who kicked off the global craze called Linsanity for his winning turnaround of the team, was hired to endorse Volvo.
Geely also possesses Manganese Bronze, the company that assembles London`s iconic black cabs, and assembles the TX4 model in Shanghai to export to Britain.
Mainland Chinese investors have also been encouraged by the growth prospects of Geely, said CMB International Capital`s automotive analyst Fiona Liang.
Geely last month announced a two thousand seventeen sales target of one million vehicles, an increase of thirty four per cent from last year. The company issued a profit alert last month, forecasting its two thousand sixteen net income to more than dual from Two.26 billion yuan in 2015.
Its revenue per vehicle is expected at 76,000 yuan this year, up 11.1 per cent from last year, CMBI said.
Liang said Geely`s product line has been welcomed by Chinese consumer and will be further enriched in 2017.
Apart from the fresh global brand Lynk & Co, Geely will launch a duo of fresh cars, includes two fresh multi-purpose vehicle models, a fresh midsize SUV, a fresh hatchback, and the Emgrand PHEV version, extending its exposure to MPV, midsize SUV, and PHEV segments.