GELYF - Weaker Earnings And More Complexity At Geely Hit The Stock

• Geely had a rough 2020, with second half results well short of expectations, and the complex ties between Geely Auto and its parent company aren't getting any simpler.
• Not merging Volvo into Geely Auto is a mixed outcome, Geely could use a luxury nameplate, but the cost savings from increased design and sourcing collaboration could still be meaningful.
• The ZEEKR JV looks like an attempt to leverage market enthusiasm for EV pure-plays, but it does mean the loss of a high-potential new Lynk model to the new JV.
• Geely shares have been quite weak since my last update, but 2021 is shaping up as a better year, the company continues to be poised for share gains in China's auto market, and the shares look undervalued.

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