Guangzhou Automobile Group Co Ltd Class H (HK:2238)
:2238
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Guangzhou Automobile Group Co
(2238)
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Rating:45Neutral
Price Target:
HK$2.50
▼(-21.38% Downside)
Action:Reiterated
Date:05/02/26
The score is primarily constrained by deteriorating profitability and renewed cash burn, despite strong revenue growth and a moderately leveraged balance sheet. Technicals further weigh on the outlook with a clear downtrend and very weak momentum. Valuation provides only limited support due to losses (negative P/E) and a modest dividend yield.
Positive Factors
Joint ventures and diversified revenue streams
GAC's JV relationships provide durable access to technology, product platforms and distribution with global automakers. These partnerships diversify revenue sources, reduce solo development risk, and improve long-term competitiveness and scale in China’s core market and export opportunities.
Negative Factors
Deteriorated profitability
Sustained negative margins and operating losses erode reinvestment capacity, reduce pricing flexibility and impair returns on capital. If losses persist, they will limit the company’s ability to fund R&D, EV transition and new models, weakening long-term competitiveness.
Read all positive and negative factors
Positive Factors
Negative Factors
Joint ventures and diversified revenue streams
GAC's JV relationships provide durable access to technology, product platforms and distribution with global automakers. These partnerships diversify revenue sources, reduce solo development risk, and improve long-term competitiveness and scale in China’s core market and export opportunities.
Read all positive factors
Guangzhou Automobile Group Co (2238) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$60.84B
Dividend Yield1.35%
Average Volume (3M)24.53M
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth-10.32%
EPS Growth-1232.89%
CountryHK
Employees86,451
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-0.81
Shares Outstanding2,813,368,400
10 Day Avg. Volume35,641,887
30 Day Avg. Volume24,532,473
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$3.60Price Target Upside13.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.2
Revenue Forecast (FY)HK$109.61B
Guangzhou Automobile Group Co Business Overview & Revenue Model
Company Description
Guangzhou Automobile Group Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, and sale of vehicles and motorcycles, and parts and components; and provision of commercial and financial services in Mainland...
How the Company Makes Money
GAC Group primarily makes money by selling vehicles and by earning income from joint-venture automotive operations. Key revenue streams generally include: (1) Vehicle sales from self-owned brands: revenue from the manufacture and sale (wholesale t...
Guangzhou Automobile Group Co Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
62
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 95.99B | 94.04B | 107.78B | 129.71B | 110.01B | 75.68B |
| Gross Profit | -4.06B | -5.28B | 7.18B | 9.76B | 8.22B | 6.41B |
| EBITDA | -6.90B | -7.20B | 8.51B | 10.42B | 14.38B | 13.31B |
| Net Income | -8.60B | -8.56B | 823.58M | 4.43B | 8.06B | 7.33B |
Balance Sheet | ||||||
| Total Assets | 223.86B | 215.09B | 232.46B | 218.39B | 190.02B | 154.20B |
| Cash, Cash Equivalents and Short-Term Investments | 48.32B | 55.29B | 54.18B | 56.01B | 43.74B | 27.26B |
| Total Debt | 43.38B | 40.00B | 29.82B | 22.06B | 20.61B | 17.28B |
| Total Liabilities | 115.67B | 105.30B | 110.68B | 93.99B | 67.77B | 61.60B |
| Stockholders Equity | 104.24B | 105.33B | 114.35B | 115.72B | 113.23B | 90.26B |
Cash Flow | ||||||
| Free Cash Flow | -13.58B | -23.99B | 59.36M | -4.85B | -13.36B | -11.83B |
| Operating Cash Flow | -7.01B | -15.03B | 10.92B | 6.73B | -5.35B | -5.59B |
| Investing Cash Flow | 2.64B | -5.64B | -11.75B | -2.47B | -3.83B | 1.65B |
| Financing Cash Flow | 14.31B | 5.52B | 2.21B | 4.07B | 24.28B | 72.84M |
Guangzhou Automobile Group Co Technical Analysis
Negative
3.18
Price Trends
3.07
Negative
3.44
Negative
3.44
Negative
Market Momentum
-0.14
Positive
25.17
Positive
15.73
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 3.18 is above the 20-day moving average (MA) of 2.79, above the 50-day MA of 3.07, and below the 200-day MA of 3.44, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 25.17 is Positive, neither overbought nor oversold. The STOCH value of 15.73 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$211.20B | 5.70 | 18.03% | 1.95% | 39.48% | -27.45% | |
71 Outperform | HK$161.48B | 8.28 | 41.37% | ― | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | HK$152.71B | 24.70 | 10.49% | 3.41% | 17.13% | -18.63% | |
58 Neutral | HK$885.76B | 51.93 | 11.86% | 1.55% | -3.19% | -40.56% | |
48 Neutral | HK$127.11B | 4,582.27 | 1.55% | ― | -22.22% | -86.30% | |
45 Neutral | HK$60.84B | -11.14 | -8.08% | 1.35% | -10.32% | -1232.89% |
* Consumer Cyclical Sector Average
HK:2238
Guangzhou Automobile Group Co
2.65
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Guangzhou Automobile Group Co Corporate Events
Guangzhou Automobile Group Sets 2025 AGM to Vote on Governance, Financing and Board Changes
May 21, 2026
Guangzhou Automobile Group has convened its 2025 annual general meeting for 12 June 2026 in Guangzhou, where shareholders will review and vote on the company’s 2025 annual report, board work report, financial statements, profit distribution ...
Guangzhou Automobile Group Announces Departure of Non-Executive Director Chen Xiaomu
May 21, 2026
Guangzhou Automobile Group has announced the resignation of non-executive director Chen Xiaomu, effective 21 May 2026, citing work adjustments, though he will remain a member of the company’s Strategy Execution Committee. The board emphasize...
Guangzhou Automobile Group Confirms Board Line-Up and Committee Roles
May 21, 2026
Guangzhou Automobile Group has announced the current composition of its board of directors, confirming two executive directors, four non-executive directors and four independent non-executive directors. The company also reaffirmed Feng Xingya as c...
Guangzhou Automobile Group Boosted by Surging New Energy Vehicle Sales in April 2026
May 6, 2026
Guangzhou Automobile Group Co., Ltd. reported that its April 2026 vehicle production rose 23.28% year on year to 133,912 units and sales increased 3.88% to 120,960 units, bringing year-to-date production to 528,697 units and sales to 500,889 units...
Guangzhou Automobile Group Narrows Q1 Loss as Revenue Edges Higher
Apr 29, 2026
Guangzhou Automobile Group reported a modest 2% year-on-year increase in first-quarter 2026 revenue to RMB 20.04 billion, while remaining loss-making at the net level. Net profit attributable to shareholders narrowed to a loss of RMB 656 million, ...
Guangzhou Automobile Group Sets Board Meeting to Approve Q1 2026 Results
Apr 17, 2026
Guangzhou Automobile Group Co. has scheduled a board meeting for 29 April 2026 to review and approve its unaudited first-quarter results for the period ended 31 March 2026, prepared under PRC Generally Accepted Accounting Principles. The announcem...
GAC March Sales Edge Higher as New Energy Vehicles Drive Growth
Apr 2, 2026
Guangzhou Automobile Group reported March 2026 vehicle production of 193,770 units, up 2.60% year on year, though cumulative output for the first three months fell 3.99% to 394,785 units. Vehicle sales in March rose 1.68% to 176,855 units, lifting...
Guangzhou Automobile Group Sells 12% Stake in Investee to Controlling Shareholder for RMB1.92 Billion
Mar 31, 2026
Guangzhou Automobile Group’s wholly owned subsidiary UPOWER Energy has agreed to sell a 12% equity stake in an investee company to controlling shareholder Guangzhou Automobile Industry Group (GAIG) for about RMB1.92 billion. Following the de...
Guangzhou Automobile Group Swings to Major Loss as 2025 Revenue Declines
Mar 27, 2026
Guangzhou Automobile Group reported a sharp deterioration in its 2025 financial performance, with revenue falling to RMB 96.5 billion from RMB 107.8 billion a year earlier and gross profit turning into a gross loss. The company swung to a consolid...
Guangzhou Automobile Group Sets March 2026 Board Meeting to Approve 2025 Results
Mar 17, 2026
Guangzhou Automobile Group Co., Ltd. has scheduled a board meeting for 27 March 2026 to review and approve the consolidated final results for the financial year ended 31 December 2025. The board will also consider recommending a final dividend, a ...
GAC Group Responds to Exchange Query on 2025 Profit Margin Pressure
Mar 15, 2026
Guangzhou Automobile Group has issued an inside information and overseas regulatory announcement responding to a query from the Shanghai Stock Exchange about its estimated 2025 results. The company emphasized that its 2025 financial figures remain...
GAC’s February Output Falls as New Energy Sales Surge but Honda JV Slumps
Mar 2, 2026
Guangzhou Automobile Group reported that its total vehicle production in February 2026 fell 14.88% year on year to 90,220 units, with year-to-date output down 9.59%, while sales in the month declined 12.43% to 86,452 units but cumulative 2026 sale...
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.