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Guangzhou Automobile Group Co
(2238)
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Rating:45Neutral
Price Target:
HK$2.00
▼(-6.10% Downside)
Action:Reiterated
Date:09/06/26
The score is held back primarily by weak financial performance, driven by current losses and negative operating/free cash flow, alongside rising leverage. Technicals are neutral-to-weak with the stock trading below key longer-term moving averages, while valuation is only modestly supported by the dividend and is complicated by a negative P/E due to losses.
Positive Factors
Revenue Recovery
The 24.5% TTM revenue rebound indicates that demand or product activity has recovered meaningfully, restoring top-line scale. If sustained through the product cycle, stronger revenue can improve operating absorption and provide a larger base from which management can rebuild profitability.
Negative Factors
Severe Profitability Deterioration
Current losses show that revenue growth is not translating into economic returns. Negative gross profit and deeply negative operating profitability indicate substantial pressure from costs, pricing or product mix, making a durable earnings recovery dependent on restoring positive unit economics and controlling the cost structure.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The 24.5% TTM revenue rebound indicates that demand or product activity has recovered meaningfully, restoring top-line scale. If sustained through the product cycle, stronger revenue can improve operating absorption and provide a larger base from which management can rebuild profitability.
Read all positive factors
Guangzhou Automobile Group Co (2238) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$50.61B
Dividend Yield2.52%
Average Volume (3M)12.05M
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth-0.41%
EPS Growth-238.41%
CountryHK
Employees82,067
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-1.24
Shares Outstanding2,813,368,400
10 Day Avg. Volume14,943,546
30 Day Avg. Volume12,046,116
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$2.33Price Target Upside9.52% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)-0.74
Revenue Forecast (FY)HK$105.77B
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, ...
How the Company Makes Money
GAC Group makes money primarily by selling vehicles and providing related automotive services through a mix of (1) its own-brand vehicle operations and (2) equity income and distributions from joint ventures with global automakers, alongside suppo...
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 | -8.94B | -7.20B | 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
Neutral
2.13
Price Trends
2.19
Negative
2.42
Negative
3.04
Negative
Market Momentum
-0.02
Negative
48.86
Neutral
39.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2238, the sentiment is Neutral. The current price of 2.13 is below the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.19, and below the 200-day MA of 3.04, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 39.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$183.56B | 9.22 | 17.21% | 3.01% | 34.63% | 6.58% | |
70 Outperform | HK$145.22B | 6.73 | 34.74% | 3.90% | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | HK$127.55B | 20.76 | 6.90% | 5.25% | 19.18% | -48.45% | |
54 Neutral | HK$824.84B | 26.59 | 12.56% | 0.50% | -5.22% | -30.07% | |
48 Neutral | HK$101.20B | -17.97 | -6.52% | ― | -24.50% | -159.09% | |
45 Neutral | HK$50.61B | -4.89 | -10.19% | 2.52% | -0.41% | -238.41% |
* Consumer Cyclical Sector Average
HK:2238
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Guangzhou Automobile Group Co Corporate Events
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 ...
GAC Warns of Sharply Wider Losses Amid Intensifying Auto Market Pressures
Jul 10, 2026
Guangzhou Automobile Group has warned investors that it expects to post a significantly wider net loss attributable to shareholders for the first half of 2026, estimated between RMB4.06 billion and RMB4.57 billion. On an adjusted basis, stripping ...
GAC Group Sees Mixed June Results as New Energy Vehicle Sales Surge
Jul 2, 2026
Guangzhou Automobile Group reported June 2026 vehicle production of 145,406 units, down 5.13% year on year, with year-to-date output slipping 0.61% to 796,778 units. Sales in June fell 3.47% to 144,866 units, but cumulative sales for 2026 rose 2.3...
Guangzhou Automobile Group Wins Strong Shareholder Backing at 2025 AGM
Jun 12, 2026
Guangzhou Automobile Group Co., Ltd. held its 2025 annual general meeting on 12 June 2026 in Guangzhou, complying with PRC Company Law and its articles of association. The meeting was chaired by Chairman Feng Xingya, with most directors present, a...
Guangzhou Automobile Group Details Board and Committee Structure
Jun 12, 2026
Guangzhou Automobile Group has announced the current composition of its board of directors, detailing the mix of executive, non-executive and independent non-executive members and confirming Feng Xingya and Xia Xianqing as executive directors. The...
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.