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Guangzhou Automobile Group Co Ltd Class H (HK:2238)
:2238

Guangzhou Automobile Group Co (2238) AI Stock Analysis

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HK:2238

Guangzhou Automobile Group Co

(2238)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
HK$4.50
▲(17.80% Upside)
The overall stock score is primarily influenced by strong technical momentum, which is the most significant positive factor. However, this is offset by challenges in financial performance and a concerning valuation with a negative P/E ratio. The absence of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Strategic Partnerships
Partnerships with global brands enhance technology sharing and production capabilities, strengthening market position and product offerings.
Electric Vehicle Expansion
Investing in EVs aligns with industry trends towards sustainability, potentially capturing a larger market share in the growing EV sector.
Stable Balance Sheet
A stable balance sheet with a manageable debt-to-equity ratio provides financial stability and resilience against short-term risks.
Negative Factors
Revenue Decline
Declining revenue indicates challenges in market demand or competitive positioning, affecting long-term growth prospects.
Profitability Pressures
Weak margins suggest operational inefficiencies and profitability challenges, impacting financial performance and shareholder returns.
Cash Flow Challenges
Negative free cash flow due to high capital needs limits financial flexibility, potentially affecting future investments and growth.

Guangzhou Automobile Group Co (2238) vs. iShares MSCI Hong Kong ETF (EWH)

Guangzhou Automobile Group Co Business Overview & Revenue Model

Company DescriptionGuangzhou Automobile Group Co., Ltd. (GAC Group) is a leading automotive manufacturer based in China, engaged in the design, development, production, and sale of a wide range of vehicles. The company operates in various sectors, including passenger vehicles, commercial vehicles, and automotive components. GAC Group collaborates with several well-known global automotive brands, including Toyota, Honda, and Fiat Chrysler, to produce vehicles that cater to both domestic and international markets. Its core products encompass sedans, SUVs, and electric vehicles, emphasizing innovation and sustainability in the automotive industry.
How the Company Makes MoneyGAC Group generates revenue through the sale of vehicles, including passenger cars, commercial vehicles, and electric vehicles. The company has multiple revenue streams, primarily driven by its partnerships with joint ventures with global automotive brands, which include shared technology and production capabilities that enhance efficiency and product offerings. Additionally, GAC Group earns income from the sale of automotive parts and components, as well as from after-sales services, such as maintenance and repairs. The company's focus on expanding its electric vehicle lineup and investing in research and development supports its growth strategy, aimed at capturing a larger share of the increasingly competitive automotive market.

Guangzhou Automobile Group Co Financial Statement Overview

Summary
Guangzhou Automobile Group Co shows mixed financial health with evident challenges in profitability and cash flow generation. Despite some periods of growth, recent financial results highlight operational and profitability pressures. The balance sheet remains relatively stable, providing a buffer against short-term financial risks. Strategic focus on improving operational efficiency and cash flow generation will be crucial for future financial performance.
Income Statement
55
Neutral
The company's revenue has seen fluctuations with a notable decline in the most recent TTM period. Recent margins, like the gross profit margin and net profit margin, have weakened, with the company recording negative EBIT and EBITDA margins in the TTM. This indicates challenges in operational efficiency and profitability, despite past periods of positive margins.
Balance Sheet
65
Positive
The balance sheet shows a stable equity position with a healthy equity ratio, indicating financial stability. The debt-to-equity ratio remains manageable, although there is an increase in total debt over time. The return on equity has deteriorated due to recent net losses, suggesting pressure on shareholder returns.
Cash Flow
60
Neutral
Operating cash flow has shown improvement in the TTM, but free cash flow remains negative due to high capital expenditures. The ratio of operating cash flow to net income has been inconsistent, reflecting variability in cash generation relative to accounting profits. Overall, cash flow management appears challenged by high capital needs.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue104.14B107.78B129.71B110.01B75.68B63.16B
Gross Profit3.35B7.18B9.76B8.22B6.41B4.37B
EBITDA-5.29B8.51B10.42B14.38B13.31B11.14B
Net Income-3.23B823.58M4.43B8.06B7.33B5.97B
Balance Sheet
Total Assets212.67B232.46B218.39B190.02B154.20B142.81B
Cash, Cash Equivalents and Short-Term Investments41.98B54.18B56.01B43.74B27.26B30.10B
Total Debt25.89B29.82B22.06B20.61B17.28B16.35B
Total Liabilities94.96B110.68B93.99B67.77B61.60B56.15B
Stockholders Equity111.28B114.35B115.72B113.23B90.26B84.32B
Cash Flow
Free Cash Flow-12.94B59.36M-4.85B-13.36B-11.83B-9.47B
Operating Cash Flow-10.77B10.92B6.73B-5.35B-5.59B-2.89B
Investing Cash Flow-10.58B-11.75B-2.47B-3.83B1.65B468.81M
Financing Cash Flow8.98B2.21B4.07B24.28B72.84M-1.79B

Guangzhou Automobile Group Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.82
Price Trends
50DMA
3.55
Positive
100DMA
3.46
Positive
200DMA
3.20
Positive
Market Momentum
MACD
0.11
Positive
RSI
62.08
Neutral
STOCH
56.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2238, the sentiment is Positive. The current price of 3.82 is below the 20-day moving average (MA) of 3.90, above the 50-day MA of 3.55, and above the 200-day MA of 3.20, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 56.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2238.

Guangzhou Automobile Group Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$187.36B10.4313.04%3.36%7.93%-12.94%
72
Outperform
HK$181.81B9.4917.60%1.95%
64
Neutral
HK$78.96B-11.65-3.15%1.34%-8.79%-212.16%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
57
Neutral
HK$72.95B-117.18-0.38%0.62%4.35%86.99%
55
Neutral
HK$16.03B-22.31-1.14%5.00%-6.72%-130.82%
53
Neutral
HK$147.20B-47.17-9.03%86.21%51.50%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2238
Guangzhou Automobile Group Co
4.06
0.63
18.26%
HK:0175
Geely Automobile Holdings
16.96
2.28
15.55%
HK:1958
BAIC Motor
2.00
-0.33
-14.16%
HK:0489
Dongfeng Motor Group Co
8.80
4.81
120.55%
HK:2333
Great Wall Motor Co
14.44
1.66
12.99%
HK:9868
XPeng, Inc. Class A
76.45
27.10
54.91%

Guangzhou Automobile Group Co Corporate Events

Guangzhou Automobile Group Reports Decline in November 2025 Production and Sales
Dec 5, 2025

Guangzhou Automobile Group Co., Ltd. reported a decline in both production and sales volumes for November 2025, with production down by 9.71% and sales down by 9.72% compared to the previous year. The year-to-date figures also show a decrease, with production down by 7.62% and sales down by 10.80%. Despite the overall decline, the company saw an increase in the production and sales of new energy vehicles, indicating a shift towards more sustainable automotive solutions. This trend highlights the company’s strategic focus on expanding its presence in the new energy vehicle market, which could have significant implications for its future market positioning and stakeholder interests.

Leadership Change at Guangzhou Automobile Group Co., Ltd.
Nov 16, 2025

Guangzhou Automobile Group Co., Ltd. announced a change in its leadership, with Mr. Xia Xianqing appointed as the new general manager, succeeding Mr. Feng Xingya. Mr. Feng will continue as chairman, ensuring a separation of roles in line with corporate governance standards, which may enhance operational efficiency and strategic focus.

Guangzhou Automobile Group Expands Stake in Dongfeng Honda Engine
Nov 10, 2025

Guangzhou Automobile Group Co., Ltd. announced a connected transaction involving a capital increase agreement with Honda Motor, Honda China, and GAC Honda. This agreement will enlarge the registered capital of GAC Honda, enhancing its equity interest in Dongfeng Honda Engine from 50% to 100%. The transaction is expected to strengthen GAC Honda’s operational capabilities and market positioning, although it remains subject to certain conditions before becoming effective.

Guangzhou Automobile Group Reports Decline in October 2025 Production and Sales
Nov 7, 2025

Guangzhou Automobile Group Co., Ltd. reported a decrease in both production and sales volumes for October 2025, with production down by 8.30% and sales down by 8.10% compared to the previous year. The company’s year-to-date figures also showed declines, with production and sales decreasing by 7.33% and 10.94%, respectively. Despite the overall downturn, the production and sales of new energy vehicles saw modest growth, indicating a shift in consumer preference and potential strategic focus for the company. This trend may impact the company’s future market positioning and stakeholder interests as it navigates the evolving automotive landscape.

Guangzhou Automobile Group Reports Decline in Q3 2025 Financial Performance
Oct 24, 2025

Guangzhou Automobile Group Co., Ltd. has released its unaudited third quarterly report for 2025, showing a significant decline in financial performance compared to the previous year. The company reported a decrease in revenue by 14.62% and a substantial drop in net profit attributable to shareholders by 27.02%, indicating challenges in its operational efficiency and market conditions.

Guangzhou Automobile Group Schedules Board Meeting for Q3 Results
Oct 14, 2025

Guangzhou Automobile Group Co., Ltd. has announced that its board of directors will meet on October 24, 2025, to review and approve the unaudited third-quarter financial results for the period ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially influencing its market position and stakeholder confidence.

Guangzhou Automobile Group Reports Mixed Production and Sales Figures for September 2025
Oct 10, 2025

In September 2025, Guangzhou Automobile Group Co., Ltd. reported a production volume of 179,178 vehicles, marking an 11.17% increase from the previous year, while the accumulated production for 2025 showed a 7.21% decrease. Sales volume for the month was 173,176 units, a 5.17% decrease year-on-year, with an accumulated sales decrease of 11.34% for the year. Notably, new energy vehicle production increased by 28.33% in September, reflecting a strategic focus on sustainable automotive solutions. Despite the overall decline in sales, the increase in production of new energy vehicles indicates a potential shift towards more environmentally friendly offerings, which could impact the company’s market positioning and appeal to eco-conscious consumers.

Guangzhou Automobile Group Secures Approval for Corporate Bond Issuance
Sep 29, 2025

Guangzhou Automobile Group Co., Ltd. held its 2025 third extraordinary general meeting on September 29, 2025, where shareholders approved resolutions related to the company’s eligibility to issue corporate bonds and the proposed issuance size. The meeting complied with PRC Company Law and the Hong Kong Listing Rules, with a significant majority of shareholders voting in favor of the resolutions, indicating strong support for the company’s financial strategies.

Guangzhou Automobile Group Plans Bond Issuance and Capital Amendments
Sep 12, 2025

Guangzhou Automobile Group Co., Ltd. has announced the convening of its 2025 third extraordinary general meeting to discuss and approve several key resolutions. These include the issuance of corporate bonds and medium-term notes, changes to the company’s registered capital, and amendments to its Articles of Association and procedural rules. The proposed financial instruments are expected to enhance the company’s financial flexibility and support its strategic initiatives, potentially impacting its market positioning and stakeholder interests.

Guangzhou Automobile Group Proposes Governance Amendments
Sep 12, 2025

Guangzhou Automobile Group Co., Ltd. has announced proposed amendments to its Articles of Association and other procedural rules to align with the newly implemented Company Law in China. These changes include abolishing the supervisory committee in favor of an audit committee, enhancing shareholder rights, and allowing electronic communication for shareholder meetings. The proposed amendments aim to streamline operations and improve governance, with no impact on shareholder rights or class meetings.

Guangzhou Automobile Group Schedules 2025 Extraordinary General Meeting
Sep 10, 2025

Guangzhou Automobile Group Co., Ltd. has announced the scheduling of its 2025 third extraordinary general meeting on September 29, 2025. The meeting will determine the eligibility of overseas listed foreign shareholders to attend and vote, with the record date set for September 24, 2025. This meeting is significant for stakeholders as it may influence future company decisions and strategies.

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: Dec 03, 2025