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

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HK:2238

Guangzhou Automobile Group Co

(2238)

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Neutral 57 (OpenAI - 4o)
Rating:57Neutral
Price Target:
HK$3.50
▲(3.86% Upside)
The overall stock score of 57 reflects the company's mixed financial performance and valuation concerns. While the balance sheet remains stable, profitability challenges and negative earnings weigh heavily on the valuation. Technical analysis shows some short-term bullish momentum, but overall market sentiment remains cautious.
Positive Factors
Strategic Partnerships
These partnerships enhance GAC Group's product offerings and market reach, providing a competitive edge and supporting long-term growth.
Diverse Revenue Streams
A diversified revenue base reduces dependency on any single segment, enhancing resilience against market fluctuations and supporting sustainable growth.
Stable Balance Sheet
A stable balance sheet provides financial stability, enabling the company to weather economic downturns and invest in strategic initiatives.
Negative Factors
Revenue Decline
Declining revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth prospects.
Profitability Pressures
Weakening margins suggest operational inefficiencies or pricing pressures, which could hinder profitability and require strategic adjustments.
Negative Free Cash Flow
Negative free cash flow limits the company's ability to fund growth initiatives internally and may necessitate external financing, increasing financial risk.

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 Price3.37
Price Trends
50DMA
3.38
Negative
100DMA
3.18
Positive
200DMA
3.09
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
51.66
Neutral
STOCH
52.59
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 3.37 is above the 20-day moving average (MA) of 3.32, below the 50-day MA of 3.38, and above the 200-day MA of 3.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 52.59 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
78
Outperform
$194.08B11.2217.07%1.72%
66
Neutral
$192.00B9.7915.09%3.14%3.35%-6.40%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
57
Neutral
$71.41B-2.84%1.62%-8.79%-212.16%
56
Neutral
$77.49B785.53-0.38%0.58%4.35%86.99%
54
Neutral
HK$16.27B-1.14%4.90%-6.72%-130.82%
51
Neutral
HK$150.96B-13.27%65.91%48.38%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2238
Guangzhou Automobile Group Co
3.37
0.56
20.01%
HK:0175
Geely Automobile Holdings
19.80
5.53
38.79%
HK:1958
BAIC Motor
2.04
-0.04
-1.92%
HK:0489
Dongfeng Motor Group Co
9.42
6.91
275.30%
HK:2333
Great Wall Motor Co
15.67
2.35
17.65%
HK:9868
XPeng, Inc. Class A
84.40
40.25
91.17%

Guangzhou Automobile Group Co Corporate Events

Guangzhou Automobile Group Reports Estimated Loss Amid Market Challenges
Jul 11, 2025

Guangzhou Automobile Group Co., Ltd. announced a preliminary estimated net loss for the first half of 2025, ranging from RMB1,820 million to RMB2,600 million, due to challenging market conditions and a slow ramp-up of new energy vehicle sales. Despite implementing the ‘Panyu Action’ plan to stabilize operations and promote sustainable development, the company faced revenue declines from price wars and structural mismatches in its sales system, impacting its financial performance compared to the previous year.

The most recent analyst rating on (HK:2238) stock is a Hold with a HK$2.20 price target. To see the full list of analyst forecasts on Guangzhou Automobile Group Co stock, see the HK:2238 Stock Forecast page.

Guangzhou Automobile Group Reports Decline in June 2025 Production and Sales
Jul 4, 2025

Guangzhou Automobile Group Co., Ltd. reported a decline in both production and sales volumes for June 2025, with production down by 10.05% and sales down by 8.22% compared to the previous year. The company’s year-to-date figures also show a decrease, with production down by 6.73% and sales down by 12.48%. Despite the overall decline, there was a slight increase in the production of new energy vehicles, which rose by 3.58% for the month, indicating a potential shift in focus towards more sustainable vehicle options.

The most recent analyst rating on (HK:2238) stock is a Sell with a HK$1.00 price target. To see the full list of analyst forecasts on Guangzhou Automobile Group Co stock, see the HK:2238 Stock Forecast page.

Guangzhou Automobile Group Announces Change of Service Agent in Hong Kong
Jun 20, 2025

Guangzhou Automobile Group Co., Ltd. has announced a change in its agent for the service of process in Hong Kong, effective from June 20, 2025. Ms. HE Dan will replace Mr. GAO Feng in this role, a move that aligns with the company’s compliance with local regulations and may impact its operational procedures in Hong Kong.

The most recent analyst rating on (HK:2238) stock is a Sell with a HK$1.00 price target. To see the full list of analyst forecasts on Guangzhou Automobile Group Co stock, see the HK:2238 Stock Forecast page.

Guangzhou Automobile Group Reports Decline in May 2025 Production and Sales
Jun 6, 2025

Guangzhou Automobile Group Co., Ltd. reported a decline in both production and sales volumes for May 2025, with a notable year-on-year decrease of 8.16% in production and 24.80% in sales. Despite the overall downturn, the company saw growth in energy-efficient vehicle production and sales, highlighting a strategic shift towards more sustainable automotive solutions.

The most recent analyst rating on (HK:2238) stock is a Sell with a HK$1.00 price target. To see the full list of analyst forecasts on Guangzhou Automobile Group Co stock, see the HK:2238 Stock Forecast page.

Guangzhou Automobile Group Announces AGM Results and Dividend Declaration
May 23, 2025

Guangzhou Automobile Group Co., Ltd. held its 2024 Annual General Meeting on May 23, 2025, where all proposed resolutions were approved by shareholders. The meeting included the declaration of the final dividend for the year ended December 31, 2024, and addressed the withholding and payment of taxes for non-resident enterprise holders and individual holders of overseas H shares. The AGM was conducted in compliance with the relevant legal and regulatory requirements, and the resolutions were passed by a significant majority of the voting shareholders.

The most recent analyst rating on (HK:2238) stock is a Sell with a HK$1.00 price target. To see the full list of analyst forecasts on Guangzhou Automobile Group Co stock, see the HK:2238 Stock Forecast page.

Guangzhou Automobile Group Announces Final Dividend for 2024
May 23, 2025

Guangzhou Automobile Group Co., Ltd. announced a final cash dividend of RMB 0.02 per share for the financial year ending December 31, 2024, with shareholders’ approval obtained on May 23, 2025. The dividend will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.08738, and is subject to withholding tax rates of 10% for non-resident enterprises and individuals, and 20% for Southbound Trading investors. This announcement reflects the company’s commitment to returning value to shareholders while adhering to tax regulations, potentially impacting investor sentiment and market positioning.

The most recent analyst rating on (HK:2238) stock is a Sell with a HK$1.00 price target. To see the full list of analyst forecasts on Guangzhou Automobile Group Co stock, see the HK:2238 Stock Forecast page.

Guangzhou Automobile Group Reports Decline in April 2025 Production and Sales
May 9, 2025

Guangzhou Automobile Group Co., Ltd. reported a significant decline in both production and sales volumes for April 2025, with a 25.74% decrease in production and a 12.66% drop in sales compared to the previous year. Despite the overall downturn, the company saw a slight increase in the sales of new energy vehicles, reflecting a strategic shift towards more sustainable automotive solutions.

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: Oct 16, 2025