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Chery Automobile Co.,Ltd. (9973) AI Stock Analysis

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HK:9973

Chery Automobile Co.,Ltd.

(HKEX:9973)

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Rating:70.1Outperform
Price Target:HKD 29.00â–²(26.42% 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 profitabilitySustained 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 marginsA 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.

Chery Automobile Co.,Ltd. (9973) vs. iShares MSCI Hong Kong ETF (EWH)

-30%-20%-10%0%10%20%HK:9973-25.12%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 133.25B
Dividend Yield
4.29%
Average Volume (3M)
3.10M
Price to Earnings (P/E)
5.9
Beta (1Y)
0.75
Revenue Growth
―
EPS Growth
―
Country
Hong Kong
Employees
70,103
Sector
General
Sector Strength
55
Industry
Auto - Manufacturers

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 vehi...

How the Company Makes Money

null

Chery Automobile Co.,Ltd. Financial Statement Overview

Summary

Net profitability improved (higher net income and net margin) and leverage declined (lower debt-to-equity), supporting resilience. Offsetting this, operating profitability softened (lower operating and EBITDA margins) and cash generation weakened sharply year over year (lower operating cash flow and free cash flow), raising cash-conversion consistency risk.

Income Statement

72Positive

Balance Sheet

66Positive

Cash Flow

55Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2017
Income Statement
Total Revenue299.76B292.52B269.90B163.21B92.62B29.47B
Gross Profit45.74B40.37B36.31B26.09B12.80B1.90B
EBITDA19.61B17.56B22.77B17.40B9.92B-669.40M
Net Income17.75B18.53B14.13B11.95B6.27B285.94M
Balance Sheet
Total Assets298.29B259.46B214.00B179.43B121.96B83.09B
Cash, Cash Equivalents and Short-Term Investments118.99B106.39B97.14B53.63B32.32B11.30B
Total Debt14.67B39.43B25.48B39.03B34.03B42.52B
Total Liabilities243.61B208.55B188.07B164.85B113.55B62.38B
Stockholders Equity54.11B50.78B26.49B15.45B9.22B20.38B
Cash Flow
Free Cash Flow012.88B41.92B18.46B4.26B-4.94B
Operating Cash Flow023.87B44.89B24.93B9.84B-3.12B
Investing Cash Flow0-29.51B-3.18B4.02B-4.95B3.55B
Financing Cash Flow0-4.15B-13.78B-6.46B-825.00M3.97B

Chery Automobile Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

HK:9973 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:9973HK:997370OutperformHKD 133.25B5.8533.66%4.29%――
HK:0175HK:017570OutperformHKD 150.15B7.6317.21%3.61%27.19%3.59%
HK:2333HK:233357NeutralHKD 118.39B19.755.80%6.20%13.25%-51.39%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
HK:1211HK:121151NeutralHKD 719.87B23.5313.09%0.60%0.29%-15.06%
HK:2238HK:223840UnderperformHKD 46.09B-4.42-11.24%2.82%-0.41%-238.61%

* General Sector Average

Performance Comparison

-40%-20%0%20%40%HK:9973HK:1211HK:0175HK:2238HK:2333Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:9973 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:9973Chery Automobile Co.,Ltd.22.94-8.22-26.38%
HK:1211BYD (BYDDF)68.25-30.38-30.80%
HK:0175Geely Automobile13.84-3.47-20.05%
HK:2238Guangzhou Automobile Group Co Class H1.94-1.31-40.46%
HK:2333Great Wall Motor Co Class H6.49-7.96-55.08%

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 seve...

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 highlighte...

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 China...

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 str...

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 posted...

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 it...

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 brand...

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 endorsed t...

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. The...

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 outline...

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.

Date of analysis: Aug 06, 2026