Movement Alert｜GEELY AUTO Falls 3.04% in Regular Trading, Auto Sector Weakness Compounded by Lynk & Co Brand Quality Concerns

Market Focus08-06 14:16

On August 6, GEELY AUTO fell 3.04% in regular trading, trading at 18.84 HKD/share, with turnover of approximately HKD 295 million. The decline occurred amid broad weakness across the automobile manufacturing sector.

The auto sector experienced collective selling pressure, with BYD Company down 3.3%, Leapmotor down 3.96%, NIO down 3.36%, Li Auto down 2.7%, and XPeng down 2.54%. On the company-specific front, GEELY AUTO's subsidiary Lynk & Co brand continues to face headwinds from multiple negative developments. The brand's July sales plunged 40% year-over-year to just 16,382 units, reflecting ongoing transformation challenges. Additionally, the recently launched Lynk & Co 07GT encountered vehicle registration issues due to certificate parameter entry errors, while multiple models were reportedly affected by lidar malfunctions from supplier RoboSense, with owners demanding compensation beyond free replacements.

Despite the near-term pressure, multiple brokerages maintain bullish outlooks. Guotai Haitong maintains an Outperform rating with a target price of HKD 34.49, citing ZEEKR's 111% delivery growth and robust overseas expansion as key profit drivers offsetting Lynk & Co's weakness.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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