Changes in Hong Kong stocks | Geely Auto (00175) rose more than 5% at the end of the session, institutions say privatization is beneficial, Geely is optimistic about sales performance after integration

The Zhitong Finance App learned that Geely Auto (00175) rose more than 5% at the end of the session. As of press release, it had risen 4.34% to HK$18.28, with a turnover of HK$2.25 billion.

According to the news, on May 7, Geely Auto announced that it plans to acquire all of the shares already issued by Jikrypton. Geely currently holds about 65.7% of Geely Krypton's shares. If the transaction is completed, Geely Krypton will fully merge with Geely Automobile. Extreme Krypton will be delisted from the NYSE and privatized. Furthermore, according to reports from the first fiscal quarter, Jikrypton, which previously used a direct management model, introduced a partner (agency system) model to fill the gap in the channel layout in the sinking market and accelerate the achievement of this year's sales target.

BOC International believes that the privatization of Krypton will benefit Geely. After privatization, Geely will establish a unified listing platform, fully integrating Krypton assets, resources, BOM costs, and R&D investment and expenses, etc., which are expected to be reduced. The bank is optimistic about Geely's sales performance after consolidation, maintaining a “buy” rating and target price of HK$22.5.