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 China and Hong Kong. More Details
Adequate balance sheet average dividend payer.
Share Price & News
How has Guangzhou Automobile Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2238 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 2238's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: 2238 underperformed the Hong Kong Auto industry which returned 103% over the past year.
Return vs Market: 2238 underperformed the Hong Kong Market which returned 24.4% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Guangzhou Automobile Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StWhat Kind Of Investors Own Most Of Guangzhou Automobile Group Co., Ltd. (HKG:2238)?
1 month ago | Simply Wall StDoes Guangzhou Automobile Group (HKG:2238) Have A Healthy Balance Sheet?
1 month ago | Simply Wall StIs Guangzhou Automobile Group Co., Ltd. (HKG:2238) A Smart Pick For Income Investors?
Is Guangzhou Automobile Group undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 2238 (HK$6.71) is trading above our estimate of fair value (HK$3.57)
Significantly Below Fair Value: 2238 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 2238 is good value based on its PE Ratio (6.7x) compared to the Hong Kong Auto industry average (11.8x).
PE vs Market: 2238 is good value based on its PE Ratio (6.7x) compared to the Hong Kong market (11.7x).
Price to Earnings Growth Ratio
PEG Ratio: 2238 is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: 2238's PB Ratio (0.7x) is in line with the HK Auto industry average.
How is Guangzhou Automobile Group forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2238's forecast earnings growth (16.8% per year) is above the savings rate (1.5%).
Earnings vs Market: 2238's earnings (16.8% per year) are forecast to grow faster than the Hong Kong market (16.7% per year).
High Growth Earnings: 2238's earnings are forecast to grow, but not significantly.
Revenue vs Market: 2238's revenue (9.1% per year) is forecast to grow slower than the Hong Kong market (12.4% per year).
High Growth Revenue: 2238's revenue (9.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2238's Return on Equity is forecast to be low in 3 years time (10.6%).
How has Guangzhou Automobile Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2238 has a high level of non-cash earnings.
Growing Profit Margin: 2238's current net profit margins (12%) are higher than last year (7%).
Past Earnings Growth Analysis
Earnings Trend: 2238's earnings have declined by 4% per year over the past 5 years.
Accelerating Growth: 2238's earnings growth over the past year (107.5%) exceeds its 5-year average (-4% per year).
Earnings vs Industry: 2238 earnings growth over the past year (107.5%) exceeded the Auto industry 38%.
Return on Equity
High ROE: 2238's Return on Equity (9.3%) is considered low.
How is Guangzhou Automobile Group's financial position?
Financial Position Analysis
Short Term Liabilities: 2238's short term assets (CN¥49.4B) exceed its short term liabilities (CN¥36.7B).
Long Term Liabilities: 2238's short term assets (CN¥49.4B) exceed its long term liabilities (CN¥15.2B).
Debt to Equity History and Analysis
Debt Level: 2238's debt to equity ratio (16.7%) is considered satisfactory.
Reducing Debt: 2238's debt to equity ratio has reduced from 35.8% to 16.7% over the past 5 years.
Debt Coverage: 2238's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if 2238's interest payments on its debt are well covered by EBIT.
What is Guangzhou Automobile Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 2238's dividend (3.24%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.94%).
High Dividend: 2238's dividend (3.24%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.03%).
Stability and Growth of Payments
Stable Dividend: 2238's dividend payments have been volatile in the past 10 years.
Growing Dividend: 2238's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (21.6%), 2238's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 2238's dividends in 3 years are forecast to be well covered by earnings (33.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Xingya Feng (53 yo)
Mr. Feng Xingya has been General Manager of Guangzhou Automobile Group Co., Ltd. since November 22, 2016 and served as its Deputy General Manager since July 2008 until November 21, 2016. Mr. Xingya serves ...
CEO Compensation Analysis
Compensation vs Market: Xingya's total compensation ($USD321.57K) is below average for companies of similar size in the Hong Kong market ($USD853.80K).
Compensation vs Earnings: Xingya's compensation has increased by more than 20% in the past year.
Experienced Management: 2238's management team is considered experienced (4.3 years average tenure).
Experienced Board: 2238's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Guangzhou Automobile Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: Guangzhou Automobile Group Co., Ltd.
- Ticker: 2238
- Exchange: SEHK
- Founded: 1997
- Industry: Automobile Manufacturers
- Sector: Automobiles
- Market Cap: HK$126.840b
- Shares outstanding: 10.35b
- Website: https://www.gac.com.cn
Number of Employees
- Guangzhou Automobile Group Co., Ltd.
- GAC Center
- No.23, Xingguo Road
- Guangdong Province
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 com...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/16 10:08|
|End of Day Share Price||2021/05/14 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.