(Yicai Global) June 30 -- The market value of Geely Automobile [HK:00175] has risen by nearly USD4.5 billion (HKD35 billion) from a mere HKD113.5 billion on May 31.
Geely has attained HKD148.3 billion since it announced the acquisition of 49.9 percent of shares of Proton under Malaysian DRB-Hicom Berhad [KLSE:DRBHCOM] and 51 percent of its luxury sports car brand Lotus Cars on May 24.
Geely's shares climbed 2.48 percent to HKD16.56 as of June 29, up more than three times in the last year.
Good market performance has hitherto already driven Geely chairman Li Shufu to become the richest man in China's car industry. Mr. Li's fortune was USD6.7 billion as of Feb. 17, 2017, more than the USD5.9 billion of Wei Jianjun, the chairman of Great Wall Motor Co. [HK:2333]. Mr. Li's wealth has now scaled to around USD9 billion after the market rally and serial increases in May.
This is not the end, however. Geely's net profit will break the CNY10 billion mark in 2018 to be double that of 2016, pundits predict. Geely is expected to overtake Great Wall Motor to become the most lucrative independent car enterprise in China, per this figure. The latter recorded CNY10.55 billion net profit last year.
Geely's official figures show its net profit nudging CNY5.17 billion last year, logging 126 percent annual growth. The carmaker's net take will hit CNY4 billion for the whole year to attain CNY8 billion-9 billion, based on official information from exchanges last month. Geely's gross margin will likewise significantly improve.