Introduction: Since April, many senior officials, including President of Geely Holding Group, CEO of Geely Automobile Group and President An Conghui, have intensively reduced their holdings of Geely shares.
In April, Geely Automobile (HKEx: 00175) ushered in intensive reduction of senior management. The reporter learned from Geely that the response is: collective exercise of options when they expire.
According to the equity data of the Hong Kong Stock Exchange, since April, many senior officials including President of Geely Holding Group, CEO of Geely Automobile Group and President An Conghui have intensively reduced their holdings of Geely shares.
On April 16th, Zhejiang Geely Holding, whose actual controlling shareholder is Li Shufu, chairman of Geely Holding Group, reduced its holding of 85.22 million shares of Geely Automobile. An Conghui reduced his holdings by 10.7 million shares at a price of HK$ 16.53 each, with a total value of about HK$ 177 million.
On April 17th, An Conghui once again reduced his holdings of 5.472 million shares of Geely Automobile at a price of HK$ 17.5. After this reduction, An Conghui only holds 102,000 shares of Geely Automobile, accounting for 0% of the issued voting shares. On the same day, Yang Jian, Li Donghui and Gui Shengyue, executive directors of Geely Automobile, also reduced their holdings of Geely Automobile. Among them, Yang Jian holds 8.475 million shares, Li Donghui holds 1.376 million shares and Gui Shengyue holds 3 million shares. After the completion of this reduction, the percentages of the three people in the issued voting shares are 0.07%, 0.02% and 0.12% respectively.
On April 23rd, Geely Automobile was once again collectively reduced by two executive directors. Among them, Gui Shengyue reduced his holdings by 800,000 shares at an average price of HK$ 17.8, and Hong Shaolun reduced his holdings by 270,000 shares at the same average price. After the completion of this reduction, the percentage of the issued voting shares of the two is 0.12% and 0.04% respectively.
Market analysts believe that the intensive reduction of executives has dragged down the share price of Geely Automobile. Geely Automobile hit an eight-month high of HK$ 19.14 on April 18, and then closed down continuously for several trading days, and closed at HK$ 16.02 on April 26. According to Grunhui APP, since April, funds from Southbound have continuously flowed out of the stock, and the accumulated net selling amount has reached HK$ 3.015 billion.
Geely told reporters that the above reduction was due to the expiration of some executive options about 10 years ago, which had nothing to do with actual operation.
In fact, it is irrational to attribute the stock price decline entirely to the reduction of senior officials. In fact, on April 12th, six Geely Automobile executives, including An Conghui, Gui Shengyue, Yang Jian and Li Donghui, successively reduced their holdings of 54 million Geely Automobile shares. Li Shufu and Geely Holding Group respectively increased their holdings of 55.03 million shares of Geely Automobile.
For the future trend of Geely Automobile’s share price. Institutions have different views. Morgan Stanley is an active bear. It once published a technical opinion report, which reduced Geely Automobile’s investment rating and target price by HK$ 8. The bank believes that Geely’s share price will fall in the next 30 days, and the probability of this happening is expected to be between 70 and 80%. The reason behind this is that the inventory level of Geely Automobile continues to rise. It is estimated that the company’s wholesale sales in April will drop by 8-10% year-on-year, and retail sales will drop by 12-15% year-on-year. According to the bank, the inventory of Geely’s Lexus brand has risen to the level of more than two months.
In a recent research report, Nomura Securities still maintained Geely Automobile’s "Buy" rating and raised the company’s earnings per share forecast for 2019-2020 by 1%. Daiwa also expressed the view that it is still optimistic about Geely Automobile (00175) and gave it a "buy" rating, believing that it is a good time to absorb it. The target price for Geely Automobile is maintained at HK$ 22. (Yang Haiyan)
关于作者