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Chery Automobile Co.,Ltd.
(9973)
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Rating:70Outperform
Price Target:
HK$29.00
▲(14.35% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by attractive valuation (low P/E and meaningful dividend yield). Financial performance is supportive but tempered by a sharp year-over-year deterioration in operating and free cash flow and softer operating margins. Technical signals are mixed, with modest near-term strength but the price still below longer-term moving averages.
Positive Factors
Improved net profitability
Sustained higher net income and an expanded net margin indicate the company is converting revenue into bottom-line profits more effectively. This durable improvement supports reinvestment capacity, dividend coverage and resilience through cycles, helping finance long-term product and distribution initiatives.
Negative Factors
Weakened operating margins
A marked decline in operating and EBITDA margins signals rising operating costs or pricing pressure that can persist absent structural fixes. Lower operating profitability reduces cash flow cushion, limiting capacity to invest in product upgrades or absorb cyclical demand shocks over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved net profitability
Sustained higher net income and an expanded net margin indicate the company is converting revenue into bottom-line profits more effectively. This durable improvement supports reinvestment capacity, dividend coverage and resilience through cycles, helping finance long-term product and distribution initiatives.
Read all positive factors
Chery Automobile Co.,Ltd. (9973) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$146.61B
Dividend Yield3.95%
Average Volume (3M)2.23M
Price to Earnings (P/E)6.6
Beta (1Y)0.78
Revenue GrowthN/A
EPS GrowthN/A
CountryHK
Employees70,103
SectorGeneral
Sector StrengthN/A
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)1.75
Shares Outstanding2,354,772,000
10 Day Avg. Volume1,778,926
30 Day Avg. Volume2,232,974
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)3.03
Price to Sales (P/S)0.53
P/FCF Ratio11.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$39.08Price Target Upside54.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)3.59
Revenue Forecast (FY)HK$334.65B
Chery Automobile Co.,Ltd. Business Overview & Revenue Model
Company Description
Chery Automobile Co., Ltd., a prominent global automotive manufacturer established in 1997 and headquartered in Wuhu, People's Republic of China, is actively engaged in the design, engineering, production, and worldwide distribution of passenger v...
How the Company Makes Money
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Chery Automobile Co.,Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 147.40B | 292.52B | 292.63B |
| Gross Profit | 19.21B | 40.37B | 36.31B |
| EBITDA | 16.21B | 17.56B | 22.77B |
| Net Income | 10.10B | 18.53B | 14.13B |
Balance Sheet | |||
| Total Assets | 244.72B | 259.46B | 227.74B |
| Cash, Cash Equivalents and Short-Term Investments | 92.34B | 106.39B | 97.14B |
| Total Debt | 22.35B | 39.43B | 25.48B |
| Total Liabilities | 192.30B | 201.29B | 188.07B |
| Stockholders Equity | 31.73B | 50.78B | 26.49B |
Cash Flow | |||
| Free Cash Flow | 8.43B | 12.88B | 41.92B |
| Operating Cash Flow | 8.55B | 23.87B | 49.91B |
| Investing Cash Flow | -29.05B | -29.51B | -3.18B |
| Financing Cash Flow | -7.10B | -4.15B | -13.78B |
Chery Automobile Co.,Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$180.09B | 8.96 | 17.21% | 3.10% | 34.63% | 6.58% | |
70 Outperform | HK$146.61B | 6.64 | 34.74% | 3.95% | ― | ― | |
59 Neutral | HK$125.55B | 20.52 | 6.90% | 5.32% | 19.18% | -48.45% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | HK$810.64B | 25.86 | 12.56% | 0.52% | -5.22% | -30.07% | |
45 Neutral | HK$50.49B | -4.85 | -10.19% | 2.51% | -0.41% | -238.41% |
* General Sector Average
HK:9973
Chery Automobile Co.,Ltd.
24.90
-5.89
-19.13%
HK:1211
BYD Co
79.85
-24.15
-23.22%
HK:0175
Geely Automobile Holdings
16.12
-1.84
-10.26%
HK:2238
Guangzhou Automobile Group Co
2.15
-1.18
-35.44%
HK:2333
Great Wall Motor Co
7.56
-9.26
-55.07%
Chery Automobile Co.,Ltd. Corporate Events
Chery Automobile’s July Sales Jump 24% as New Energy and Exports Surge
Aug 2, 2026
Chery Automobile reported unaudited total sales of 261,876 vehicles in July 2026 across its five major brands, a 24.1% year-on-year increase, with new energy vehicles accounting for 119,441 units and exports reaching 196,311 units. For the first s...
Chery Executives Boost H-Share Holdings, Signalling Confidence in Growth
Jul 10, 2026
Chery Automobile said chairman Yin Tongyue, executive director Zhang Guozhong and several senior managers bought additional H shares on the market on 9 July 2026, increasing their personal stakes at prices around HK$26 per share. The board highlig...
Chery Sets Up Connected-Party Framework for Passenger Vehicle Sales to Guangdong Ruixun
Jul 7, 2026
Chery Automobile has signed an Automobile Sales Framework Agreement with Guangdong Ruixun, a company controlled by Chery’s non-executive director Wang Laichun, to govern the sale of passenger vehicles to the Guangdong Ruixun Group within Chi...
Chery Automobile Proposes 10‑Year H Share Award Scheme to Boost Incentives
Jul 7, 2026
Chery Automobile has proposed adopting a new H share award scheme aimed at incentivising and stabilising its core team and fostering a long‑term community of interests among employees, the company and shareholders. The scheme is designed to ...
Chery Automobile Posts 9.5% June Sales Growth on Strong Core Brand Demand
Jul 1, 2026
Chery Automobile reported that total sales across its five major brands reached 240,585 vehicles in June 2026, up 9.5% year on year, with first-half sales rising 7.8% to 1,275,076 units. Growth was driven largely by the core CHERY brand, which pos...
Chery Automobile Updates Final 2025 Dividend Terms for Hong Kong Shareholders
Jun 3, 2026
Chery Automobile Co., Ltd., a major Chinese passenger vehicle maker listed in Hong Kong, continues to expand its presence among international investors through its H-share listing. The company operates in the competitive automotive sector and uses...
Chery’s May Sales Jump 21% as Core Brand and EV Line Drive Growth
Jun 1, 2026
Chery Automobile reported unaudited total sales of 231,944 vehicles in May 2026, up 20.7% year on year, with year‑to‑date sales rising 7.5% to 1,034,491 units, underscoring solid overall growth. Performance was led by the core Chery br...
Chery Wins Strong Shareholder Backing as AGM Approves Dividend, ESG Report and Auditor Mandate
May 20, 2026
Chery Automobile Co., Ltd. reported that shareholders approved all resolutions at its annual general meeting held in Wuhu on 20 May 2026, with no voting restrictions and near-unanimous support across its 5.81 billion issued shares. The AGM endorse...
Chery Automobile Overhauls Board and Supervisory Leadership for New Term
May 20, 2026
Chery Automobile has reshaped its top governance structure, electing long-serving executive Mr. Yin Tongyue as both chairman of the board and president for the sixth board term, effective from the conclusion of its May 20 annual general meeting. T...
Chery Automobile Details Board and Committee Structure to Boost Governance Transparency
May 20, 2026
Chery Automobile Co., Ltd. has disclosed the current composition of its board of directors, detailing the roles of executive, non-executive, and independent non-executive members, including Chairman and President Yin Tongyue. The company also outl...
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.