* Geely sets 2011 sales target of 480,000 units, up 16 pct
* Shares rise as much as 3.5 percent on Wednesday
(Adds 2011 target, analyst quotes)
HONG KONG Jan 12 Shares in Geely Automobile
Holdings Ltd (0175.HK) rebounded on Wednesday after the automaker
said its December auto sales rose 25.5 percent, lifting annual
sales above the full-year target of 400,000 units.
The stock climbed as much as 3.5 percent to a session high of
HK$3.82 before paring gains to 1.9 percent by the midday trading
break, beating the blue chip Hang Seng Index's .HSI 0.8 percent
Geely, whose parent bought Swedish premium brand Volvo Cars
from Ford Motor Co (F.N) last year, told Reuters on Tuesday that
2010 sales rose 27 percent. [ID:nTOE70A03T]
The company has set a sales target for 2011 of 480,000 units,
an increase of about 16 percent over 2010, the company said in a
filing to the Hong Kong stock exchange late on Tuesday.
"The target is largely in line with the industry as we expect
China's auto sales to rise about 15 percent this year," Kim Eng
auto analyst Robert Wang.
Geely reported its best monthly sales ever in December of
56,133 vehicles, taking full-year sales to 415,286. Concern that
Geely might miss its 2010 target had sent its stock down 4.2
percent in the past two days.
"Geely's sales exceeded the company's target by 3.1 percent
and that removed market concerns," Wang said.
Auto sales in China rose by a third to a record in 2010, but
analysts said sales may decline, especially in the first few
months of this year, after Beijing scrapped incentives for small
(Reporting by Alison Leung; Editing by Chris Lewis)