Guangzhou Automobile Group Co stock analysis
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Guangzhou Automobile Group Co (2238) Stock Price & Analysis
2238 Stock Chart & Stats
- Day’s Range
- HKD 1.98 - HKD 2.02
- 52-Week Range
- HKD 1.93 - HKD 4.38
- Previous Close
- HKD 2.02
- Volume
- N/A
- Average Volume (3M)
- 8.23M
- Market Cap
- HKD 48.14B
- Enterprise Value
- HKD 7.82B
- Total Cash (Recent Filing)
- HKD 49.58B
- Total Debt (Recent Filing)
- HKD 55.71B
- Price to Earnings (P/E)
- ―
- Beta
- 0.78
- Next Earnings
- Apr 01, 2027 (Est.)
- EPS Estimate
- 0.55
- Last Dividend Ex-Date
- Jun 12, 2025
- Dividend Yield
- 2.71%
Bulls Say, Bears Say
Bulls Say
Revenue Rebound
The strong TTM revenue rebound indicates that demand and sales activity have recovered materially from the prior weakness. Sustained top-line improvement would provide a broader base for operating leverage, product investment, and eventual restoration of profitability if margins stabilize.
Meaningful Equity Base
A sizeable equity base provides the company with some balance-sheet capacity while it works through current losses and cash consumption. This financial cushion can support ongoing operations and strategic investment, although its durability depends on limiting further losses and leverage increases.
Diversified Automotive Platform
GAC Group operates across vehicle brands, joint ventures, components, financing, distribution, and after-sales services. This breadth gives the company multiple automotive revenue channels and reduces reliance on a single product or activity, supporting business resilience over the medium term.
Bears Say
Persistent Unprofitable Operations
The return to large losses in 2025 and continued weakness in TTM indicate that revenue recovery has not translated into healthy earnings. Negative gross profit and operating margins point to poor earnings quality and make near-term profitability restoration a central execution challenge.
Negative Cash Generation
Negative operating and free cash flow means the core business is currently consuming cash rather than funding investment and working-capital needs internally. If losses persist, the company may have less flexibility to support growth, strengthen its balance sheet, or withstand further operating pressure.
Rising Leverage And Negative Returns
Higher debt relative to equity increases financial risk as returns on the capital base remain negative. The combination of rising leverage and unprofitable assets can reduce funding flexibility, increase pressure on future cash flows, and constrain capital allocation while the business recovers.
Guangzhou Automobile Group Co News
2238 FAQ
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Guangzhou Automobile Group Co Stock Smart Score
Company Description
Guangzhou Automobile Group Co
Guangzhou Automobile Group Co., Ltd., or GAC Group, is a diversified automotive conglomerate established in 1997 and headquartered in Guangzhou, People's Republic of China. A subsidiary of Guangzhou Automobile Industry Group Co., Ltd., GAC Group, along with its various entities, is deeply involved in the entire lifecycle of vehicles and motorcycles—from their initial research and development through manufacturing and eventual sale. The company's extensive product portfolio encompasses a broad range of vehicles, including large to medium-sized passenger cars, light and heavy-duty trucks, construction vehicles, and advanced energy-efficient vehicles. Its motorcycle division produces diverse models such as standard bikes, sport motorcycles, and scooters. Furthermore, GAC Group manufactures numerous essential auto parts and components, including engines, gearboxes, car seats, micro motors, shifters, electric controllers, and both interior and exterior decorative elements. Operating through distinct segments, "Vehicles and Related Operations" and "Others," GAC Group extends its operations throughout Mainland China and internationally. The company provides a comprehensive suite of commercial and financial services, such as financial investment, various insurance products (including brokerage services), financial leasing, and automobile credit. Beyond these, its activities include vehicle sales, logistics, global trade, dealing in pre-owned vehicles, disassembling end-of-life vehicles for recycling, offering supporting services, and developing digitalization and mobility transportation solutions. Additionally, GAC Group's business scope covers investment management services and the trading of steel.
- Sector
- Consumercyclical
- Industry
- Auto - Manufacturers
- CEO
- Xianqing Xia
- Employees
- 82,067
- Website
- www.gac.com.cn
- Address
- No. 668 Jinshan Road East, Guangzhou, GD, 511434, CN
Guangzhou Automobile Group Co (2238) Earnings & Revenues
2238 Stock 12 Month Forecast
Average Price Target
Technical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 2 | 5 | 15 |
| Technical Analysis | 2 | 5 | 3 |
| Moving Averages | 0 | 0 | 12 |
