Guangzhou Automobile Group Co Ltd Class H (HK:2238)
:2238
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Guangzhou Automobile Group Co
(2238)
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Rating:47Neutral
Price Target:
HK$3.00
▼(-3.23% Downside)
Action:ReiteratedDate:04/04/26
The score is held down primarily by deteriorating profitability and weak, frequently negative cash generation, which increase operational and funding risk. Technicals also point to a clear downtrend with negative momentum. Valuation is only modestly supportive due to losses (negative P/E) and a moderate dividend yield.
Positive Factors
JV partnerships and diversified revenue streams
GAC's mix of JVs and self-owned brands provides durable revenue diversification and access to partner technology, reducing single-brand concentration risk. Over months, this structure supports stable production, platform sharing, and market access, cushioning cyclical shocks.
Negative Factors
Weak and volatile cash generation
Persistent negative operating cash flow and very large 2025 FCF outflows elevate funding and execution risk. Over several months, this can force reliance on external financing or asset sales, constrain R&D/product launches, and limit the ability to support dealers or incentives.
Read all positive and negative factors
Positive Factors
Negative Factors
JV partnerships and diversified revenue streams
GAC's mix of JVs and self-owned brands provides durable revenue diversification and access to partner technology, reducing single-brand concentration risk. Over months, this structure supports stable production, platform sharing, and market access, cushioning cyclical shocks.
Read all positive factors
Guangzhou Automobile Group Co (2238) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$68.15B
Dividend Yield1.35%
Average Volume (3M)24.53M
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-8.79%
EPS Growth-212.16%
CountryHK
Employees86,451
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-0.50
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 Upside16.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.02
Revenue Forecast (FY)HK$111.41B
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 generates revenue primarily by selling vehicles and related automotive products and services through a multi-channel structure that includes joint ventures (JVs) and its own branded operations. (1) Vehicle sales (core): The company earns...
Guangzhou Automobile Group Co Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
66
Positive
Cash Flow
22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 94.04B | 107.78B | 129.71B | 110.01B | 75.68B |
| Gross Profit | -5.28B | 7.18B | 9.76B | 8.22B | 6.41B |
| EBITDA | -7.20B | 8.51B | 10.42B | 14.38B | 13.31B |
| Net Income | -8.56B | 823.58M | 4.43B | 8.06B | 7.33B |
Balance Sheet | |||||
| Total Assets | 215.09B | 232.46B | 218.39B | 190.02B | 154.20B |
| Cash, Cash Equivalents and Short-Term Investments | 55.29B | 54.18B | 56.01B | 43.74B | 27.26B |
| Total Debt | 40.00B | 29.82B | 22.06B | 20.61B | 17.28B |
| Total Liabilities | 105.30B | 110.68B | 93.99B | 67.77B | 61.60B |
| Stockholders Equity | 105.33B | 114.35B | 115.72B | 113.23B | 90.26B |
Cash Flow | |||||
| Free Cash Flow | -23.99B | 59.36M | -4.85B | -13.36B | -11.83B |
| Operating Cash Flow | -15.03B | 10.92B | 6.73B | -5.35B | -5.59B |
| Investing Cash Flow | -5.64B | -11.75B | -2.47B | -3.83B | 1.65B |
| Financing Cash Flow | 5.52B | 2.21B | 4.07B | 24.28B | 72.84M |
Guangzhou Automobile Group Co Technical Analysis
Negative
3.10
Price Trends
3.57
Negative
3.67
Negative
3.45
Negative
Market Momentum
-0.15
Positive
32.86
Neutral
30.60
Neutral
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 3.1 is below the 20-day moving average (MA) of 3.31, below the 50-day MA of 3.57, and below the 200-day MA of 3.45, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 32.86 is Neutral, neither overbought nor oversold. The STOCH value of 30.60 is Neutral, 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$258.31B | 9.90 | 18.03% | 1.95% | ― | ― | |
66 Neutral | HK$178.22B | 12.11 | 11.66% | 3.41% | 7.93% | -12.94% | |
64 Neutral | HK$975.34B | 24.33 | 14.29% | 1.55% | 22.94% | 10.22% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | HK$146.56B | 107.16 | 1.55% | ― | -10.21% | -54.95% | |
47 Neutral | HK$68.15B | -4.42 | -7.98% | 1.35% | -8.79% | -212.16% |
* Consumer Cyclical Sector Average
HK:2238
Guangzhou Automobile Group Co
3.10
0.41
15.33%
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103.90
-5.03
-4.62%
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Geely Automobile Holdings
23.82
10.12
73.91%
HK:2333
Great Wall Motor Co
13.45
2.46
22.38%
HK:2015
Li Auto, Inc. Class A
71.80
-9.40
-11.58%
HK:9973
Chery Automobile Co.,Ltd.
32.02
-0.78
-2.38%
Guangzhou Automobile Group Co Corporate Events
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...
GAC Group January Sales Jump on Surging New Energy Vehicle Demand Despite Production Dip
Feb 1, 2026
Guangzhou Automobile Group reported that its total vehicle production in January 2026 fell 4.77% year on year to 110,795 units, even as sales rose 18.47% to 116,622 units, signaling tighter inventories but stronger market demand. The group’s...
Guangzhou Automobile Group Warns of RMB 8–9 Billion Loss for 2025 Amid EV Transition Pressure
Jan 30, 2026
Guangzhou Automobile Group Co., Ltd. has warned that it expects to post a substantial net loss attributable to shareholders of between RMB 8 billion and RMB 9 billion for 2025, compared with a profit of RMB 823.58 million in 2024, while the loss a...
Guangzhou Automobile Group Shareholders Back Board Changes and Governance Rule Amendments at EGM
Jan 23, 2026
Guangzhou Automobile Group Co., Ltd. held its first extraordinary general meeting of 2026 on 23 January in Guangzhou, with shareholders and proxies representing about 60.36% of the company’s voting share capital in attendance, satisfying PRC...
Guangzhou Automobile Group Details Board and Committee Structure
Jan 23, 2026
Guangzhou Automobile Group Co., Ltd. has announced the current composition of its board of directors and the allocation of roles across four key board committees. The board comprises two executive directors, five non-executive directors and four i...
Guangzhou Automobile Group Posts Double-Digit Sales Decline in 2025 Amid Mixed JV Performance
Jan 7, 2026
Guangzhou Automobile Group reported that its total vehicle production in December 2025 fell 20.23% year on year to 165,302 units, while monthly sales dropped 33.82% to 187,453 units; for the full year 2025, production declined 8.98% to 1.74 millio...
Guangzhou Automobile Group Calls January 2026 EGM to Vote on Governance Changes
Jan 7, 2026
Guangzhou Automobile Group Co., Ltd. has called its first extraordinary general meeting of 2026 for 23 January in Guangzhou, where shareholders will vote on the election of a director and amendments to the company’s rules for independent dir...
Guangzhou Automobile Group Sets Record Date for 2026 First Extraordinary General Meeting
Jan 5, 2026
Guangzhou Automobile Group Co., Ltd. has announced arrangements for its first extraordinary general meeting of 2026, which is scheduled to be held on 23 January 2026. The company has set 19 January 2026 as the record date for determining the eligi...
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.