Earnings Alerts

Guangzhou Automobile Group (2238) Earnings Plunge: FY Net Income Drops by 73% to 82% Amidst Market Competition

By January 10, 2025 No Comments
  • Guangzhou Auto’s preliminary net income for the fiscal year is expected to decrease significantly by 73% to 82%.
  • The projected net income ranges from 800 million yuan to 1.2 billion yuan.
  • The company attributes this decline to a drop in vehicle sales due to intense market competition.
  • An 18 billion yuan expenditure was made to stimulate sales.
  • Analyst recommendations for the company include 9 buy ratings, 9 hold ratings, and 3 sell ratings.

Guangzhou Automobile Group on Smartkarma

Analyst coverage of Guangzhou Automobile Group on Smartkarma, a platform for independent analyst research, reveals insights from Travis Lundy. Lundy’s research on the A/H Premium Tracker highlights shifts in premia curves and market dynamics. The reports indicate that H-shares have underperformed A-shares recently, with wide premia brokers showing bounce-backs supported by Southbound inflows. Despite ongoing differences in opinions on Chinese stimulus, there are opportunities for market-making in wide spreads and high premia as volatility drops and speculation drives possible contraction in premia.

Lundy’s analysis emphasizes the need to identify trends and capitalize on market movements. With limited catalysts for better H-share performance and ongoing geopolitical and economic uncertainties impacting the market, investors are advised to monitor the evolving relationship between onshore and offshore opinions. The reports provide valuable insights for investors looking to navigate the complexities of the Guangzhou Automobile Group’s stock performance within the broader context of Chinese market dynamics.


A look at Guangzhou Automobile Group Smart Scores

FactorScoreMagnitude
Value5
Dividend5
Growth3
Resilience4
Momentum5
OVERALL SMART SCORE4.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Guangzhou Automobile Group Company, Ltd. has received strong scores across the board from Smartkarma, indicating a positive long-term outlook for the company. With top marks in both value and dividend scores, investors can see that the company is viewed favorably in terms of its financial health and ability to provide returns to shareholders.

Additionally, Guangzhou Automobile Group scored well in resilience and momentum, suggesting that the company is robust enough to withstand market fluctuations and has positive momentum for future growth. Although growth scored slightly lower, the overall outlook for Guangzhou Automobile Group appears promising, backed by its diverse involvement in manufacturing, selling, and servicing automobiles along with its presence in auto finance sectors.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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