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Guangzhou Automobile Group Co
(2238)
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Rating:52Neutral
Price Target:
HK$2.00
▼(-6.10% Downside)
Action:Reiterated
Date:10/01/26
The score is held back primarily by weak financial performance—loss-making profitability and negative operating/free cash flow—alongside rising leverage. Technical indicators provide partial support with improving momentum versus key short- and mid-term moving averages, while valuation is mixed due to a negative P/E (loss-driven) and only a modest dividend yield.
Positive Factors
Recent Revenue Rebound
The 24.5% TTM revenue rebound indicates that demand or sales execution has recovered meaningfully from the prior period. If maintained, stronger top-line scale could improve operating leverage, support investment in vehicle offerings, and provide a foundation for restoring profitability over the next several quarters.
Negative Factors
Severe Profitability Deterioration
The return to losses is a major fundamental weakness because revenue growth is not currently converting into viable earnings. Negative gross profit and operating profitability suggest pricing, product mix, or cost pressures are overwhelming scale benefits, leaving profitability recovery dependent on sustained operational improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Recent Revenue Rebound
The 24.5% TTM revenue rebound indicates that demand or sales execution has recovered meaningfully from the prior period. If maintained, stronger top-line scale could improve operating leverage, support investment in vehicle offerings, and provide a foundation for restoring profitability over the next several quarters.
Read all positive factors
Guangzhou Automobile Group Co (2238) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$46.09B
Dividend Yield2.82%
Average Volume (3M)13.46M
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth-0.41%
EPS Growth-238.61%
CountryHK
Employees82,067
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-1.24
Shares Outstanding2,813,368,400
10 Day Avg. Volume8,156,814
30 Day Avg. Volume13,464,241
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.36
Price to Sales (P/S)0.40
P/FCF Ratio-1.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$2.78Price Target Upside30.67% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-0.78
Revenue Forecast (FY)HK$106.60B
Guangzhou Automobile Group Co Business Overview & Revenue Model
Company Description
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, ...
Guangzhou Automobile Group Co Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
56
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 117.52B | 94.04B | 107.78B | 129.71B | 110.01B | 75.68B |
| Gross Profit | -6.94B | -5.28B | 7.18B | 9.76B | 8.22B | 6.41B |
| EBITDA | -8.81B | -7.09B | 8.51B | 10.42B | 14.38B | 13.31B |
| Net Income | -12.98B | -8.56B | 823.58M | 4.43B | 8.06B | 7.33B |
Balance Sheet | ||||||
| Total Assets | 231.61B | 215.09B | 232.46B | 218.39B | 190.02B | 154.20B |
| Cash, Cash Equivalents and Short-Term Investments | 64.44B | 55.29B | 54.18B | 56.01B | 43.74B | 27.26B |
| Total Debt | 51.49B | 40.00B | 29.82B | 22.06B | 20.61B | 17.28B |
| Total Liabilities | 127.30B | 105.30B | 110.68B | 93.99B | 67.77B | 61.60B |
| Stockholders Equity | 100.44B | 105.33B | 114.35B | 115.72B | 113.23B | 90.26B |
Cash Flow | ||||||
| Free Cash Flow | -20.08B | -23.99B | 59.36M | -4.85B | -13.36B | -11.83B |
| Operating Cash Flow | -11.36B | -15.03B | 10.92B | 6.73B | -5.35B | -5.59B |
| Investing Cash Flow | 2.82B | -5.64B | -11.75B | -2.47B | -3.83B | 1.65B |
| Financing Cash Flow | 17.19B | 5.52B | 2.21B | 4.07B | 24.28B | 72.84M |
Guangzhou Automobile Group Co Technical Analysis
Negative
2.13
Price Trends
2.22
Negative
2.23
Negative
2.75
Negative
Market Momentum
-0.09
Positive
31.72
Neutral
3.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2238, the sentiment is Negative. The current price of 2.13 is below the 20-day moving average (MA) of 2.14, below the 50-day MA of 2.22, and below the 200-day MA of 2.75, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 31.72 is Neutral, neither overbought nor oversold. The STOCH value of 3.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2238.
Guangzhou Automobile Group Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$133.25B | 5.85 | 33.66% | 4.29% | ― | ― | |
70 Outperform | HK$150.15B | 7.63 | 17.21% | 3.61% | 27.19% | 3.59% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | HK$118.39B | 19.75 | 5.80% | 6.20% | 13.25% | -51.39% | |
52 Neutral | HK$46.09B | -4.42 | -11.24% | 2.82% | -0.41% | -238.61% | |
51 Neutral | HK$719.87B | 23.53 | 13.09% | 0.60% | 0.29% | -15.06% | |
48 Neutral | HK$87.94B | -16.04 | -6.52% | ― | -24.50% | -159.09% |
* Consumer Cyclical Sector Average
HK:2238
Guangzhou Automobile Group Co
1.94
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Guangzhou Automobile Group Co Corporate Events
Guangzhou Automobile Group Posts Higher Sales but Deeper Losses in Q3 2026
Oct 30, 2026
Guangzhou Automobile Group reported a sharp deterioration in profitability for the third quarter of 2026 despite double‑digit revenue growth, with net profit attributable to shareholders falling steeply and basic earnings per share turning m...
Guangzhou Automobile Group Advances FAW Toyota Stake Acquisition Via Share Issuance
Oct 30, 2026
Guangzhou Automobile Group has moved forward with a major related-party transaction to deepen its footprint in joint-venture passenger cars, agreeing to acquire by share issuance a 50% equity stake in FAW Toyota Motor Co., Ltd. from FAW Group. The...
Guangzhou Automobile Group Sets Board Meeting to Approve Q3 2026 Results
Oct 20, 2026
Guangzhou Automobile Group Co., Ltd. has scheduled a board meeting for 30 October 2026 to review and approve its unaudited third-quarter results for the nine months ended 30 September 2026, prepared under PRC Generally Accepted Accounting Principl...
Guangzhou Automobile Group Sees September Car Output Slump as EV Sales Surge
Oct 9, 2026
Guangzhou Automobile Group reported a sharp decline in overall vehicle production and sales for September 2026, with monthly output down 24.01% to 136,150 units and sales falling 25.72% to 128,634 units, while year-to-date production and sales sli...
Guangzhou Automobile Group to Acquire 50% of FAW Toyota via Share Issuance
Sep 28, 2026
Guangzhou Automobile Group plans to acquire a 50% equity stake in FAW Toyota by issuing new A shares as consideration, which will make FAW Toyota a principal jointly controlled entity alongside Toyota Motor Group while keeping its financials uncon...
GAC Group Moves to Acquire FAW JV Stake and Suspends A-Share Trading
Sep 18, 2026
Guangzhou Automobile Group Co., Ltd. is a major Chinese automotive manufacturer listed in Shanghai and Hong Kong, engaged in vehicle production through various joint ventures and partnerships across the domestic auto market. The group operates as ...
Guangzhou Automobile Plans Major Asset Reorganisation With FAW Group
Sep 14, 2026
Guangzhou Automobile Group has signed an agreement of intent with FAW Group to acquire part of FAW’s equity in an automobile manufacturing joint venture, funding the deal through an issuance of A shares. The restructuring is designed to opti...
Guangzhou Automobile Group Halts Hong Kong Trading Pending Inside Information
Sep 14, 2026
Guangzhou Automobile Group announced that trading in its shares on the main board of the Hong Kong Stock Exchange has been halted from 9:30 a.m. on Monday, 14 September 2026 at the company’s own request. The suspension comes as the automaker...
Guangzhou Automobile Group Sees EV Surge Amid Mixed August Vehicle Sales
Sep 4, 2026
Guangzhou Automobile Group reported August 2026 vehicle production of 126,727 units, down 1.18% year-on-year, with year-to-date output falling 2.99% to 1,026,789 units. Sales in August reached 126,584 units, a 6.71% annual decline, though cumulati...
Guangzhou Automobile Group’s Interim Loss Widens Despite Revenue Growth
Aug 28, 2026
Guangzhou Automobile Group reported unaudited interim results for the six months ended 30 June 2026 showing revenue of RMB 46.5 billion, up from RMB 42.6 billion a year earlier, but the company remained loss-making. The period saw a widened net lo...
Guangzhou Automobile Group Sets Board Meeting to Review 2026 Interim Results
Aug 17, 2026
Guangzhou Automobile Group has scheduled a board meeting for 28 August 2026 to review and approve the interim results for the first half of 2026. The board will also consider the potential declaration of an interim dividend, signaling attention to...
GAC July Output Falls as New Energy Vehicle Sales Surge
Aug 4, 2026
Guangzhou Automobile Group reported a sharp year-on-year decline in July 2026 vehicle production to 103,284 units and a smaller drop in monthly sales to 112,934 units, with cumulative output for the year down 3.24% but sales up 1.28%. The figures ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.