Geely Automobile Holdings Limited's (HKG:175) Business Is Yet to Catch Up With Its Share Price

Simply Wall St.12-22 08:20

It's not a stretch to say that Geely Automobile Holdings Limited's (HKG:175) price-to-earnings (or "P/E") ratio of 9.4x right now seems quite "middle-of-the-road" compared to the market in Hong Kong,...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2493610217?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/4021000-choice1-main-header/1585186682108","is_english":true,"pubTime":"2024-12-22 08:20","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2493610217","market":"nz","top_or_hot":-1,"title":"Geely Automobile Holdings Limited's (HKG:175) Business Is Yet to Catch Up With Its Share Price","media":"Simply Wall St.","content":"<div>\n<p>It's not a stretch to say that Geely Automobile Holdings Limited's  (HKG:175) price-to-earnings (or \"P/E\") ratio of 9.4x right now seems quite \"middle-of-the-road\" compared to the market in Hong Kong,...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/automobiles/hkg-175/geely-automobile-holdings-shares/news/geely-automobile-holdings-limiteds-hkg175-business-is-yet-to\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Geely Automobile Holdings Limited's (HKG:175) Business Is Yet to Catch Up With Its Share Price</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGeely Automobile Holdings Limited's (HKG:175) Business Is Yet to Catch Up With Its Share Price\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-22 08:20 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/automobiles/hkg-175/geely-automobile-holdings-shares/news/geely-automobile-holdings-limiteds-hkg175-business-is-yet-to><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>It's not a stretch to say that Geely Automobile Holdings Limited's  (HKG:175) price-to-earnings (or \"P/E\") ratio of 9.4x right now seems quite \"middle-of-the-road\" compared to the market in Hong Kong,...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/automobiles/hkg-175/geely-automobile-holdings-shares/news/geely-automobile-holdings-limiteds-hkg175-business-is-yet-to\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EVS.SI","symbol_name":"MSCI China Electric Vehicles and Future Mobility ETF-NikkoAM","start_time":0,"source_url":"https://simplywall.st/stocks/hk/automobiles/hkg-175/geely-automobile-holdings-shares/news/geely-automobile-holdings-limiteds-hkg175-business-is-yet-to","article_id":"2493610217","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4021000-choice1-main-header/1585186682108"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2493610217","pubTimestamp":1734826817,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"It's not a stretch to say that Geely Automobile Holdings Limited's ( HKG:175 ) price-to-earnings (or \"P/E\") ratio of...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"80175":"吉利汽车-R","EVS.SI":"MSCI China Electric Vehicles and Future Mobility ETF-NikkoAM","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","IE00BZ08YS42.EUR":"GUINNESS BEST OF CHINA \"C\" (EUR) ACC","BK1539":"汽车股","BK1589":"北水核心资产","IE00BZ08YT58.USD":"GUINNESS BEST OF CHINA \"C\" (USD) ACC","SG9999002828.SGD":"Eastspring Investments Unit Trusts - Dragon Peacock A SGD","LU0315179316.USD":"EASTSPRING INVESTMENTS ASIAN DYNAMIC \"A\" (USD) ACC","00175":"吉利汽车","BK1521":"挪威政府全球养老基金持仓","GELYY":"吉利汽车ADR","BK1119":"汽车制造商","IE00BZ08YR35.GBP":"GUINNESS BEST OF CHINA \"C\" (GBP) ACC"},"translate_title":"吉利汽车控股有限公司（HKG：175）的业务尚未赶上其股价","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"80175":0.6,"00175":1,"EVS.SI":0.6,"GELYY":0.6},"content_text":"It's not a stretch to say that Geely Automobile Holdings Limited's  (HKG:175) price-to-earnings (or \"P/E\") ratio of 9.4x right now seems quite \"middle-of-the-road\" compared to the market in Hong Kong, where the median P/E ratio is around 10x.  However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.     Recent times have been advantageous for Geely Automobile Holdings as its earnings have been rising faster than most other companies.   It might be that many expect the strong earnings performance to wane, which has kept the P/E from rising.  If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's not quite in favour.      See our latest analysis for Geely Automobile Holdings SEHK:175 Price to Earnings Ratio vs Industry December 22nd 2024 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Geely Automobile Holdings.  How Is Geely Automobile Holdings' Growth Trending?   In order to justify its P/E ratio, Geely Automobile Holdings would need to produce growth that's similar to the market.   Retrospectively, the last year delivered an exceptional 198% gain to the company's bottom line.   Pleasingly, EPS has also lifted 196% in aggregate from three years ago, thanks to the last 12 months of growth.  So we can start by confirming that the company has done a great job of growing earnings over that time.     Turning to the outlook, the next three years should bring diminished returns, with earnings decreasing 2.2%  per annum as estimated by the analysts watching the company.  Meanwhile, the broader market is forecast to expand by 13% each year, which paints a poor picture.  With this information, we find it concerning that Geely Automobile Holdings is trading at a fairly similar P/E to the market.  Apparently many investors in the company reject the analyst cohort's pessimism and aren't willing to let go of their stock right now.  Only the boldest would assume these prices are sustainable as these declining earnings are likely to weigh on the share price eventually.    The Final Word  Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.  Our examination of Geely Automobile Holdings' analyst forecasts revealed that its outlook for shrinking earnings isn't impacting its P/E as much as we would have predicted.  Right now we are uncomfortable with the P/E as the predicted future earnings are unlikely to support a more positive sentiment for long.  This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.     You need to take note of risks, for example - Geely Automobile Holdings has 2 warning signs   (and 1 which is concerning) we think you should know about.   It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E). New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2493610217"}