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601238:SSEGuangzhou Automobile Group Co., Ltd. Class A Analysis

Data as of 2026-03-16 - not real-time

CN¥7.85

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Guangzhou Automobile Group is trading at CNY 7.85, which sits below its 20‑day (7.89), 50‑day (8.07) and 200‑day (7.89) simple moving averages, suggesting short‑term weakness. The RSI at 45 is neutral and the MACD histogram is modestly positive, offering a faint bullish tilt, while the price hovers near the technical support of 7.68 and faces resistance around 8.11. Volatility is elevated at ~17% over the past 30 days, but beta is extremely low (≈0.06), indicating limited market‑wide price swings. Fundamentally, the firm reports a 14.6% revenue decline, negative margins (gross 1.2%, operating –11.1%, profit –3.6%), and an EBITDA loss of CNY 11.8 bn. Debt is high (debt‑to‑equity 23.1) despite a strong cash position (CNY 40.5 bn), and the dividend payout ratio exceeds earnings (162%), rendering the 0.51% yield unsustainable. The latest corporate announcement hints at a restructuring of its implementation plan, but no concrete operational turnaround details are disclosed.

Market Outlook

Short Term

< 1 year
Cautious
Model confidence: 6/10

Key Factors

  • Price below key moving averages and near technical support
  • Negative earnings and high debt‑to‑equity ratio
  • Unsustainable dividend payout

Medium Term

1–3 years
Neutral
Model confidence: 5/10

Key Factors

  • Strong cash buffer could fund restructuring
  • Potential upside from new‑energy vehicle segment
  • Continued revenue decline and weak profitability

Long Term

> 3 years
Cautious
Model confidence: 4/10

Key Factors

  • Persistent negative margins and earnings
  • High leverage despite cash reserves
  • Cyclical exposure to Chinese consumer demand and regulatory shifts

Key Metrics & Analysis

Financial Health

Revenue Growth-14.60%
Profit Margin-3.61%
P/E Ratio-156.7
ROE-4.84%
ROA-3.89%
Debt/Equity23.13
P/B Ratio0.7
Op. Cash FlowCN¥-890399552
Free Cash FlowCN¥-4360170496

Technical Analysis

TrendNeutral
RSI45.3
SupportCN¥7.68
ResistanceCN¥8.11
MA 20CN¥7.89
MA 50CN¥8.07
MA 200CN¥7.89
MACDBullish
VolumeStable
Fear & Greed Index72.88

Valuation

GradeUndervalued
TypeValue
Dividend Yield0.51%

Risk Assessment

Beta0.06
Volatility17.06%
Sector RiskMedium
Reg. RiskMedium
Geo RiskHigh
Currency RiskMedium
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.