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02238
GAC GROUP
HKD
3.050-0.050
(-1.61%)
1D
AI Analysis for 02238
AI Analysis
High
3.110
Open
3.110
VWAP
3.03
Vol
12.71M
Mkt Cap
38.65B
Low
3.010
Amount
38.56M
EV/EBITDA(TTM)
--
Total Shares
10.20B
EV
60.48B
EV/OCF(TTM)
--
P/S(TTM)
0.77
Guangzhou Automobile Group Co Ltd is a China-based company mainly engaged in automobile and related businesses. The Company's main businesses consist of research and development, manufacture of vehicles (vehicles and motorcycles), parts and components, commercial and mobility transportation services, energy and ecosystem, internationalisation as well as investment and finance. The Company conducts its businesses through two segments. Vehicles and Related Operations segment includes production and sale of a variety of passenger vehicles, commercial vehicles, automotive parts and related operations. The Others segment mainly include production and sale of motorcycles, automobile finance and insurance, other financing services and investing business. The Company mainly conducts its businesses in domestic and foreign markets.
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News
4.0
03-11aastocks<M Stanley Analysis> Ratings and Target Prices for Chinese Automakers (Table)
BYD Company Performance: BYD Company (01211.HK) saw a stock increase of 1.392% with a short selling ratio of 27.320%, and analysts maintain an "Overweight" rating with a target price of HK$126, highlighting advancements in their 2nd-Gen Blade Battery technology.
Geely Auto Update: Geely Auto (00175.HK) experienced a significant rise of 8.525% in stock price, with a short selling ratio of 17.295%, and is also rated "Overweight" with a target price of HK$25.
Other Automotive Stocks: GAC Group (02238.HK) and Dongfeng Group (00489.HK) are rated "Overweight" with minor stock increases, while BAIC Motor (01958.HK) faced a slight decline and is rated "Equalweight."
Analyst Ratings on BYD: Multiple analysts, including CICC and M Stanley, have reiterated their "Overweight" ratings on BYD, emphasizing its technological breakthroughs and the launch of the 2nd-Gen Blade Battery, which enables fast charging capabilities.
4.5
03-05aastocksGAC Chair Feng Xingya: Chinese Auto Brands Must Expand Globally While Establishing a Strong Presence and Enhancing Reputation Abroad
Industry Issues Addressed: Feng Xingya highlighted various industry challenges at the Two Sessions, focusing on new energy vehicles, intelligent driving, low-altitude economy, and automotive exports.
Strategic Direction for Automotive Industry: He emphasized the need for China's automotive sector to shift from merely expanding globally to establishing a strong presence abroad and enhancing its global influence.
5.0
03-04aastocksGAC GROUP's Hyptec A800 Incorporates Several Technologies from Huawei Maextro, Starting at RMB 165K After Subsidies
New Product Launch: GAC GROUP has launched its luxury smart sedan, the Hyptec A800, starting at RMB164,800 after subsidies.
Technological Features: The A800 is equipped with advanced technologies including Huawei's dual optical path LiDAR, Intelligent Driving ADS 4.1, omni-directional anti-collision system CAS 4.0, and HarmonyOS Cabin 5.
Market Activity: The company has reported short selling of $9.68 million with a ratio of 10.834%.
Analyst Rating: Citi has rated GAC GROUP at Neutral and set a target price of $3.8.
4.5
03-03aastocksGAC GROUP's Feng Xingya: Growth in Rural Markets Essential for NEV Development
GAC GROUP's Focus: Chairman Feng Xingya announced that during the '15th Five-Year Plan' period, GAC GROUP will prioritize advancements in the auto industry, including R&D in solid-state batteries and intelligent connected systems, while also expanding into international markets.
NEV Market Potential: Feng emphasized the need to explore the rural market for New Energy Vehicles (NEVs), highlighting its significant potential for growth and the importance of strategies to enhance NEV consumption in these areas.
7.0
02-27aastocksGAC GROUP Aims to Resume Vehicle Production and Achieve 2 Million Car Sales This Year
Company Performance: GAC GROUP aims to achieve a vehicle production and sales target of 2 million units for the year, indicating a focus on growth and operational efficiency.
Market Activity: The company experienced a short selling activity of $1.42 million, with a short selling ratio of 11.761%.
Money Flow
Over the past 66 trading days, overall net money flow is -6.39M, with retail investors contributing 705.00K and major investors adding -8.46M.
Net Buy $ Volume
Net Sell $ Volume
Citi
Citi Research
Sell
to
Neutral
upgrade
2026-02-27
Reason
The analyst rating for GAC GROUP was influenced by several factors outlined in the article. Citi Research maintained a Neutral rating for the company's H-shares while upgrading the A-shares from Sell to Neutral. The reasons for these ratings include:
1. Expected Net Loss: GAC GROUP announced a preliminary net loss attributable to shareholders between RMB8-9 billion for 2025, primarily due to higher asset impairments and a decline in investment income from joint ventures.
2. Revised Forecasts: Citi Research lowered its forecasts for GAC GROUP's losses for 2025-2027, reflecting a more conservative outlook based on actual sales performance and industry conditions.
3. Technological Advancements: The broker noted advancements in robotics technology and GAC GROUP's partnership with Huawei, which could positively impact future performance.
4. Target Price Adjustments: The target price for H-shares was increased from $3 to $3.8, and for A-shares from RMB7.2 to RMB8.1, indicating a more favorable view despite the current losses.
5. Market Conditions: After an 11% decline in A-share price over the past year, the risk-reward profile was deemed neutral, prompting the upgrade in rating.
Overall, the combination of expected losses, revised forecasts, potential technological benefits, and recent price declines contributed to the analyst's rating decision.
Citi
Sell
to
Neutral
Price Target
2026-02-27
upgrade
The analyst rating for GAC GROUP was influenced by several factors outlined in the article. Citi Research maintained a Neutral rating for the company's H-shares while upgrading the A-shares from Sell to Neutral. The reasons for these ratings include:
1. Expected Net Loss: GAC GROUP announced a preliminary net loss attributable to shareholders between RMB8-9 billion for 2025, primarily due to higher asset impairments and a decline in investment income from joint ventures.
2. Revised Forecasts: Citi Research lowered its forecasts for GAC GROUP's losses for 2025-2027, reflecting a more conservative outlook based on actual sales performance and industry conditions.
3. Technological Advancements: The broker noted advancements in robotics technology and GAC GROUP's partnership with Huawei, which could positively impact future performance.
4. Target Price Adjustments: The target price for H-shares was increased from $3 to $3.8, and for A-shares from RMB7.2 to RMB8.1, indicating a more favorable view despite the current losses.
5. Market Conditions: After an 11% decline in A-share price over the past year, the risk-reward profile was deemed neutral, prompting the upgrade in rating.
Overall, the combination of expected losses, revised forecasts, potential technological benefits, and recent price declines contributed to the analyst's rating decision.
UBS
Underperform
maintain
$4.2
2026-02-02
Reason
The analyst rating for GAC GROUP (02238.HK) is primarily influenced by the company's projected significant net loss for 2025, estimated to be between RMB8 billion and RMB9 billion, which is substantially worse than BofA Securities' expectation of RMB3.9 billion. Additionally, the core net loss, excluding one-off items, is projected to be between RMB8.9 billion and RMB9.9 billion, indicating a drastic decline in profitability compared to the previous year. The intense competition in the market is expected to continue compressing profit margins for the Group's proprietary brand, leading to a forecast of thin profitability for 2026 and 2027. As a result, UBS has maintained a Neutral rating with a target price of $4.2, while also keeping an Underperform rating on both GAC GROUP's H- and A-shares, with target prices set at $3.1 and RMB5.9, respectively.
UBS
Underperform
Price Target
$4.2
2026-02-02
maintain
The analyst rating for GAC GROUP (02238.HK) is primarily influenced by the company's projected significant net loss for 2025, estimated to be between RMB8 billion and RMB9 billion, which is substantially worse than BofA Securities' expectation of RMB3.9 billion. Additionally, the core net loss, excluding one-off items, is projected to be between RMB8.9 billion and RMB9.9 billion, indicating a drastic decline in profitability compared to the previous year. The intense competition in the market is expected to continue compressing profit margins for the Group's proprietary brand, leading to a forecast of thin profitability for 2026 and 2027. As a result, UBS has maintained a Neutral rating with a target price of $4.2, while also keeping an Underperform rating on both GAC GROUP's H- and A-shares, with target prices set at $3.1 and RMB5.9, respectively.
UBS
Neutral
maintain
2026-01-26
Reason
The analyst rating from UBS on GAC GROUP (02238.HK) was reaffirmed at Neutral due to a more balanced risk and reward profile for the company. While there have been improvements in organizational reform and cost control, the report indicates that it will take time for GAC GROUP's proprietary brands to reach breakeven. Additionally, the likelihood of a significant sales rebound for joint venture brands in 2026 is considered low. UBS also noted that the company plans to further reduce costs by 15% in 2026, which could enhance profitability and reduce operating losses for proprietary brands, but the overall outlook remains cautious.
UBS
Neutral
Price Target
2026-01-26
maintain
The analyst rating from UBS on GAC GROUP (02238.HK) was reaffirmed at Neutral due to a more balanced risk and reward profile for the company. While there have been improvements in organizational reform and cost control, the report indicates that it will take time for GAC GROUP's proprietary brands to reach breakeven. Additionally, the likelihood of a significant sales rebound for joint venture brands in 2026 is considered low. UBS also noted that the company plans to further reduce costs by 15% in 2026, which could enhance profitability and reduce operating losses for proprietary brands, but the overall outlook remains cautious.
Morgan Stanley
Morgan Stanley
maintain
$3.9
2025-12-01
Reason
Morgan Stanley's analyst rating for GAC GROUP (02238.HK) is based on several factors that indicate potential for future growth despite current limitations. The reasons for the Overweight rating include:
1. Management's Commitment to Innovation: The announcement regarding the mass production of vehicles equipped with all-solid-state batteries by 2026 suggests a forward-looking approach to technology and product development.
2. Strategic Collaborations: Increased information about the Qijing brand, developed in collaboration with Huawei, indicates potential for enhanced product offerings and market competitiveness.
3. Marketing Partnerships: The announcement of marketing cooperation with JD-SW could lead to improved brand visibility and sales opportunities.
Despite acknowledging that these developments will take time to materialize and may not significantly impact earnings in the short term, Morgan Stanley believes that GAC GROUP's current valuation is undervalued in light of these positive business developments and its retention of a 5.7% market share this year. The target price set at HKD3.9 reflects this optimistic outlook.
Morgan Stanley
Price Target
$3.9
2025-12-01
maintain
Morgan Stanley's analyst rating for GAC GROUP (02238.HK) is based on several factors that indicate potential for future growth despite current limitations. The reasons for the Overweight rating include:
1. Management's Commitment to Innovation: The announcement regarding the mass production of vehicles equipped with all-solid-state batteries by 2026 suggests a forward-looking approach to technology and product development.
2. Strategic Collaborations: Increased information about the Qijing brand, developed in collaboration with Huawei, indicates potential for enhanced product offerings and market competitiveness.
3. Marketing Partnerships: The announcement of marketing cooperation with JD-SW could lead to improved brand visibility and sales opportunities.
Despite acknowledging that these developments will take time to materialize and may not significantly impact earnings in the short term, Morgan Stanley believes that GAC GROUP's current valuation is undervalued in light of these positive business developments and its retention of a 5.7% market share this year. The target price set at HKD3.9 reflects this optimistic outlook.
BofA Securities
BofA Securities
Neutral -> Underperform
downgrade
2025-10-27
Reason
The analyst rating for GAC GROUP was downgraded from Neutral to Underperform due to weaker-than-expected results in the third quarter of 2025. The report highlighted concerns about intense competition, which is expected to compress the profit margins of GAC GROUP's own brands, thereby weakening its profitability in the fiscal years 2026-2027. Additionally, the target price was reduced from HKD 3.6 to HKD 3.1, reflecting a valuation that is considered relatively high with a forecasted P/E ratio of 29 times for 2026.
BofA Securities
Neutral -> Underperform
Price Target
2025-10-27
downgrade
The analyst rating for GAC GROUP was downgraded from Neutral to Underperform due to weaker-than-expected results in the third quarter of 2025. The report highlighted concerns about intense competition, which is expected to compress the profit margins of GAC GROUP's own brands, thereby weakening its profitability in the fiscal years 2026-2027. Additionally, the target price was reduced from HKD 3.6 to HKD 3.1, reflecting a valuation that is considered relatively high with a forecasted P/E ratio of 29 times for 2026.
Morgan Stanley
Morgan Stanley
maintain
$3.9
2025-10-15
Reason
The analyst rating for GAC GROUP (02238.HK) is "Overweight" based on several factors highlighted in the Morgan Stanley report. The key reasons for this rating include:
1. New Product Launch: GAC GROUP is set to launch a new car in collaboration with JD-SW and CATL, which is expected to be a battery swap version of the existing Aion model. This innovation is anticipated to enhance brand recognition.
2. Utilization of Technology: The new car will utilize CATL's technology, which is seen as a positive development for the company's product offerings.
3. Sales Channel: The vehicle will be sold through JD-SW's e-commerce platform, potentially expanding its market reach.
4. Long-term Profit Prospects: The report notes a significant recovery in GAC GROUP's joint venture with Toyota, suggesting a better outlook for long-term profitability.
5. Brand Expansion: The new developments are expected to assist GAC GROUP in tapping into different customer bases, which could further support its growth.
Overall, these factors contribute to Morgan Stanley's positive outlook and target price of $3.9 for GAC GROUP.
Morgan Stanley
Price Target
$3.9
2025-10-15
maintain
The analyst rating for GAC GROUP (02238.HK) is "Overweight" based on several factors highlighted in the Morgan Stanley report. The key reasons for this rating include:
1. New Product Launch: GAC GROUP is set to launch a new car in collaboration with JD-SW and CATL, which is expected to be a battery swap version of the existing Aion model. This innovation is anticipated to enhance brand recognition.
2. Utilization of Technology: The new car will utilize CATL's technology, which is seen as a positive development for the company's product offerings.
3. Sales Channel: The vehicle will be sold through JD-SW's e-commerce platform, potentially expanding its market reach.
4. Long-term Profit Prospects: The report notes a significant recovery in GAC GROUP's joint venture with Toyota, suggesting a better outlook for long-term profitability.
5. Brand Expansion: The new developments are expected to assist GAC GROUP in tapping into different customer bases, which could further support its growth.
Overall, these factors contribute to Morgan Stanley's positive outlook and target price of $3.9 for GAC GROUP.
Valuation Metrics
Forward PE
N/A
5Y Average PE
-65.94
Current PE
-53.31
Overvalued PE
1691.84
Undervalued PE
-1823.71
Forward EV/EBITDA
N/A
5Y Average EV/EBITDA
16.61
Current EV/EBITDA
0.00
Overvalued EV/EBITDA
43.61
Undervalued EV/EBITDA
-10.39
Forward PS
5Y Average PS
0.86
Current PS
0.70
Overvalued PS
1.27
Undervalued PS
0.45
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