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Analysis of Geely share price

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Are you considering investing in the Chinese stock market and are you interested in Geely shares? In that case, you should know that in order to carry out an efficient analysis of this stock, you need to know this company and its direct economic environment well. This is what we propose you to discover here with data on the Geely company such as its activities and sources of revenue but also its main competitors on the market or its main partners. We will also explain what elements you should look for and interpret for a fundamental analysis before buying or selling this stock.

Elements that can influence the price of this asset:

Analysis N°1

In particular, the group's investment in research and development aimed at developing new, more modern and innovative vehicle models should be closely monitored.

Analysis N°2

The development of new vehicle models by Geely and their introduction to the market will also influence public and therefore investor interest in the stock.

Analysis N°3

The partnerships that Geely may develop should also be of interest to you, particularly with regard to commercial and research partnerships.

Analysis N°4

Geely's international expansion strategy and the operations it carries out in order to position itself in new geographical areas will also need to be monitored.

Analysis N°5

Of course, it will also be necessary to keep an eye on the competition in this sector with the big players in the car industry in China and the rest of the world.

Analysis N°6

Finally, the company's financial results should also be studied closely, with their evolution over time and compared with analysts' expectations.

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General presentation of Geely

It is also important to have a good understanding of Geely, its business and how it generates its revenues if you want to be able to make a coherent analysis of its stock before buying or selling it. Here is a detailed presentation of the company.

Geely Automotive Holding Limited is a Chinese company engaged in the manufacture and marketing of passenger cars.

To better understand the Geely Group's activities, it is possible to divide them into different divisions according to the share of turnover they generate and in this way:

  • Vehicle sales generate the bulk of the group's revenue with 96.3% of the turnover. The group sells more than 1.5 million vehicles each year with the brands Boyue, New Emgrand, Vision, Emgrand GS, Vision SUV/X3/S1, Emgrand GL, Link&Co, Binrui and GC9.
  • The sale of car parts and components generates 3.7% of the group's turnover.

Currently, Geely Automotive owns and operates 10 production sites all in China. It employs 44,000 people in this capacity.

It is also interesting to know the geographical distribution of Geely's activities, with 98.7% of its revenues generated in China, 0.6% in Europe, 0.4% in the Middle East, 0.2% in Africa and 0.1% in Latin America.

Analysis of Geely share price
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The major competitors of Geely

Of course, Geely faces stiff competition in the Chinese automotive market, but also from some major international players. Here is a presentation of the company's main competitors:

Chang'an Automobile

This Chinese car manufacturer is based in Chongqing and is known under the brand name of Chana vehicles in China and Asia.

Beijing Automotive

This other Chinese car manufacturer specialises in the production of cars and trucks under its own name and through joint ventures with Hyundai and Mercedes.

Brillance Auto Group

This Chinese car manufacturer has been in existence since 1993 and has a joint venture with the German manufacturer BMW. The company also owns a brand of minibuses and minivans, Jinbei, as well as Huasong since 2014. Of course, it also produces its own vehicle models.

BYD Auto 

This Chinese manufacturer, formerly specialised in batteries and based in Shenzhen, diversified in 2003 following the takeover of the Tsinchuan Automobile Company. It quickly became one of the largest Chinese car brands in terms of vehicles sold. The brand name is BYD for "build your dreams".

Byton

This other Chinese car manufacturer was established in 2018. It is currently still a global brand that ranks among the top in terms of the number of vehicles sold. Byton stands out from the competition above all through its specialisation in electric vehicles.

Tesla Inc 

Finally, the Tesla Group is also a competitor to Geely in the electric vehicle segment. It is a car manufacturer of electric cars with headquarters in Austin, Texas.


The major partners of Geely

Of course, Geely does not only have enemies in its sector and can also count on some strategic allies. To better understand this, here are some examples of recent partnerships that the company has established with other companies in similar or nearby sectors.

Renault 

The first partnership we are going to talk about is the one set up with the Renault group. This was announced in 2022 and the memorandum of understanding signed between the two companies aims to accelerate the Renault plan in China and South Korea. More specifically, in China, Renault's future hybrid models will bear a diamond at the end of their bonnet but will be manufactured by Geely. Sales and customer relations will be managed by the French manufacturer. The Renault cars manufactured by this means will be built on Geely architectures as is already the case for Volvo. In South Korea, Geely is counting on Renault's industrial facilities, which have been in place with its Samsung brand for 20 years, to ensure the production of Lynk&Co models.

Waymo

Another partnership has recently been established with Geely's competitor Waymo, for which Polar Krypton will develop exclusive vehicles.

Rhom

The two companies are also forming a strategic partnership focused on SIC power devices with the aim of accelerating technical innovation in the automotive industry to achieve a sustainable society. Geely Automotive has signed an agreement with global semiconductor manufacturer ROHM to jointly develop advanced automotive technologies.

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Frequently Asked Questions

Is it possible to invest in Geely shares from the UK?

Investing in the Chinese market is of course possible for British and European investors. However, you can buy or sell Geely shares from a securities account or other trading account. It is also possible to speculate on the stock without owning it through derivatives such as CFDs or contracts for difference.

What indicators should be used for technical analysis of the Geely share?

Technical analysis of the Geely share involves the use of various trend and volatility indicators. The most frequently used by investors are the RSI indicator, MACD, stochastics, moving averages, Bollinger bands and strategic turning points such as pivot points, support and technical resistance levels. You can display these indicators directly on the charts of this stock.

How do you know if Geely shares will go up or down?

It is not possible to know precisely whether Geely's stock will go up or down. However, it is possible to get bullish or bearish signals that you can interpret by using different types of analysis such as technical analysis or fundamental analysis. Technical analysis will look at the stock's charts and fundamental analysis will focus on the study of publications and events that may influence the stock.

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