Geely: The Chinese Auto Takeover Is Going Global

Bernard Zambonin 1.86K Followers Follow Summary Geely Auto is no longer just a China-volume story. The real action is increasingly happening overseas and further upmarket. Premiumization is actually showing up where it matters, with better pricing, healthier margins, and stronger unit economics. The company has enough scale and shared technology across brands to make all that R&D spending work a lot harder. China is still the messy part of the story, but international growth is doing a pretty good job of taking some of the sting out of it. The kicker is valuation: Geely still trades more like an old-school Chinese automaker than a business whose mix and economics are clearly improving. Kevin Frayer/Getty Images News As someone based in Brazil, I never thought I would one day see so many Chinese vehicles on the streets—or even want one myself. Especially in a highly consolidated market dominated by U.S., Japanese, and European brands. Chinese This article was written by Bernard Zambonin 1.86K Followers Follow Equity Research Analyst at DM Martins Research.I cover stocks that are often undercovered, focusing primarily on Brazil and Latin America — but I also occasionally write about global large caps. My work can also be found on TipRanks, where I contribute regularly, and on TheStreet, where I was a frequent contributor in the past.- Disclaimer: All views expressed here are my own and do not necessarily reflect the views or official positions of DM Martins Research. My articles and analyses are for educational and informational purposes only and should not be taken as investment advice. Always do your own due diligence before making any investment decisions. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GELYF, BYDDY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.