HK Stock Market Move | Geely Auto (00175) surged more than 5% at the close, institutions said that privatization is extremely beneficial for Geely, and are optimistic about the sales performance after integration.

GEELY AUTO (00175) rose more than 5% in the last session, rising 4.34% to HK$18.28 at the time of publication, with a turnover of HK$2.25 billion. On the news front, on May 7th, GEELY AUTO announced plans to acquire all the shares of JiKui that have been issued. GEELY AUTO currently holds approximately 65.7% of JiKui's shares, and if the transaction is completed, JiKui will be fully merged with GEELY AUTO. JiKui will delist from the NYSE and go private. In addition, according to reports for the first quarter, JiKui, which previously used a direct-operated model in channels, introduced a partner (agency) model to fill the channel layout gap in the sinking market and accelerate the realization of this year's sales target. BOCOM INTL believes that the privatization of JiKui is good news for Geely. After the privatization of JiKui, Geely will establish a unified listing platform and fully integrate JiKui's assets, resources, BOM costs, research and development investment, and expense reduction are expected. The bank is optimistic about Geely's sales performance after the integration, and maintains a "buy" rating and a target price of HK$22.5.