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Consumer Durables

Guangzhou Automobile Group Co., Ltd.

Company Background

Guangzhou Automobile Group (GAC) is a Chinese automaker owned by the Guangzhou municipal government. It is a second-tier automaker, after China's three biggest automakers, namely First Automobile Works Group, Dongfeng Motor Group and SAIC Motor.

 

GAC sold about 1.17 million cars in 2014. It aims to increase car sales to 3 million units by 2020. Established in 1997, GAC is based in Guangzhou, Guangdong Province. Headed by Chairman Zhang Fangyou, it was listed on the Hong Kong Exchanges and Clearing (HKEx) in 2010 and the Shanghai Stock Exchange in 2012.

 

GAC has established joint ventures with several foreign automakers, including Honda Motor, Toyota Motor, Mitsubishi Motors and Isuzu Motors of Japan, and Fiat Chrysler Automobiles of the U.S. As Honda and Toyota cars account for about 40% and 30% of total sales respectively, sales of the two Japanese brands influence GAC's business performance.

 

To reduce its dependence on foreign brands, GAC has been focusing on the sales of its own brand cars in recent years, such as the Trumpchi, which now accounts for about 10% of total sales. The company has put a particular emphasis on sport utility vehicles.

Business Summary

Guangzhou Automobile Group Co. Ltd. engages in the research and development, manufacturing, sales and after-sales services of passenger vehicles, commercial vehicles, motorcycles and auto parts. The company's business activities include the import and export of automobile-related products, automobile leasing, disassembling, and automobile credit. It also engages in the provision of logistics services, finance leasing, commercial factoring, renewable resources, insurance, insurance brokerage services, and equity investment. The company operates in five segments: Research & Development, Manufacture of Vehicles & Motorcycles, Parts & Components, Commercial Services and Financial Services. The Research & Development segment is mainly responsible for the groups general development plan of new products and new technology, as well as implementation of material R&D projects. The Manufacturer of Vehicles and Motorcycles segment products include GAC Mitsubishi ASX, Pajero, Outlander, Toyota Camry, Highlander, Yaris L, E'Z, Levin, standard motorcycles, sport bikes and scooters. The Parts and Components segment operates through its subsidiary and its controlling, investee companies and associated companies and Tong Fang Logistics in the upstream and downstream of the automobile industrial chain. The Parts and components segment includes engines, gearboxes, car seats, HVAC systems, auto lamps, automation accessories, redirectors, shock absorbers and accessories. The Financial segment provides financial investment, insurance, insurance broker, financial lease, automobile credit, and other related services. The company was founded on June 6, 1997 and is headquartered in Guangzhou, China.

Financial Highlights

Dec 2019 HKDUSD
Revenue67,699.71M8,640.45M
Gross Profit2,506.46M319.89M
Operating income-5,789.95M-738.96M
Income before tax-3,523.84M-449.74M
Net income7,502.29M957.51M
EBITDA-1,010.32M-128.94M
Diluted EPS0.730.09
Dividends Per Share0.210.02
Total Assets153,766.09M19,734.34M
Total liabilities58,345.18M7,488.02M
Total equity89,698.05M11,511.85M
Operating cash flow5,863.32M748.33M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 36,286.80M 57,740.52M 82,532.12M 85,730.51M 67,699.71M
Gross Profit 3,992.82M 8,345.89M 14,524.57M 13,345.35M 2,506.46M
Operating income -567.42M 2,338.22M 5,817.93M 2,419.78M -5,789.95M
Income before tax -412.62M 1,490.00M 4,494.60M 3,683.59M -3,523.84M
Net income 5,194.86M 7,346.48M 12,689.34M 12,910.07M 7,502.29M
EBITDA 1,414.23M 4,773.16M 8,369.87M 5,846.54M -1,010.32M
Diluted EPS 0.57 0.80 1.35 1.25 0.73
Dividends Per Share 0.17 0.24 0.46 0.43 0.21
Total Assets 80,227.09M 91,645.74M 143,641.01M 150,725.28M 153,766.09M
Total liabilities 31,808.80M 39,581.14M 55,576.04M 58,360.93M 58,345.18M
Total equity 46,124.83M 48,499.06M 83,050.70M 87,080.99M 89,698.05M
Operating cash flow 10,723.69M 11,057.90M 24,773.85M 6,421.69M 5,863.32M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 4,680.61M 7,438.43M 10,590.79M 10,938.43M 8,640.45M
Gross Profit 515.03M 1,075.16M 1,863.84M 1,702.74M 319.89M
Operating income -73.19M 301.22M 746.57M 308.74M -738.96M
Income before tax -53.22M 191.95M 576.76M 469.99M -449.74M
Net income 670.08M 946.41M 1,628.33M 1,647.20M 957.51M
EBITDA 182.42M 614.90M 1,074.05M 745.96M -128.94M
Diluted EPS 0.07 0.10 0.17 0.15 0.09
Dividends Per Share 0.02 0.03 0.05 0.05 0.02
Total Assets 10,351.68M 11,820.45M 18,374.76M 19,251.31M 19,734.34M
Total liabilities 4,104.28M 5,105.17M 7,109.36M 7,454.12M 7,488.02M
Total equity 5,951.47M 6,255.40M 10,623.96M 11,122.37M 11,511.85M
Operating cash flow 1,383.24M 1,424.53M 3,179.06M 819.35M 748.33M

Valuation Measures

Dec 2019
PER11.83
ROA4.92%
ROE8.48%
Operating margin-8.55%
Profit margin11.08%

Key executives

  • General Manager & Executive Director: Xing Ya Feng
  • Chief Financial Officer & Deputy General Manager: Dan Wang
  • Deputy General Manager: Shao Li
  • Chief Accountant & Head-Finance Department: Chao Zheng
  • Secretary: Li Sui

Shareholders

  • Guangzhou State-Owned Assets Supervision & Admin. Commission (9.4%)
  • Schroder Investment Management Ltd. (4.9%)
  • The Vanguard Group, Inc. (3.7%)
  • Aegon-Industrial Fund Management Co., Ltd. (2.4%)
  • APG Asset Management NV (1.8%)
  • FIL Investment Management (Singapore) Ltd. (1.6%)
  • BlackRock Fund Advisors (1.6%)
  • Orient Securities Asset Management Co. Ltd. (1.2%)
  • FIL Investment Management (Hong Kong) Ltd. (1.1%)
  • Zhong Ou Asset Management Co., Ltd (1.0%)

Contact Details

  • Website:http://www.gagc.com.cn
  • Address: GAC Center, No. 23 Xingguo Road, Guangzhou, 510623, China
  • Phone: +86.20.8315.1089

Related Companies

  • Guangzhou Automobile Group Engineering Institute
  • Guangzhou Automobile Yingyue Venture Investment LP
  • GAC Finance Co., Ltd.
  • GAC Motor Hangzhou Co., Ltd.
  • GAC R&D Center Silicon Valley, Inc.
  • Changsha GACC-Tong Yang Automobile Component Co., Ltd.
  • Guangqi Honda Logistics Co. Ltd.
  • GAC Capital Co., Ltd.
  • Guangzhou Guang Ai Insurance Brokers Ltd.
  • Guangzhou Guangqi Commercial Logistics Co. Ltd.
  • Urtrust Insurance Co., Ltd.
  • GAC Hino (Shenyang) Motors Co. Ltd.
  • Guangzhou Automobile Group Autobus Co., Ltd.
  • Guangzhou Automobile Group Component Co., Ltd.
  • GAC Fiat Automobiles Co., Ltd.
  • Changfeng Co. Ltd.
  • Guangzhou Automobile Group Business Co. Ltd.
  • Guangzhou Automobile Group Motor Co., Ltd.
  • Zhejiang Gonow Automobile Co., Ltd.
  • GAC Changfeng Motor Co. Ltd.
  • China Lounge Investments Ltd.
  • Denway Motors Ltd.

Competitors

  • Great Wall Motor Co., Ltd. Class H
  • SAIC Motor Corporation Limited Class A
  • Brilliance China Automotive Holdings Limited
  • BAIC Motor Corporation Limited Class H
  • Nissan Motor Co., Ltd.
  • Chongqing Changan Automobile Company Limited Class B
  • Hengli Industrial Development Group Co. Ltd. Class A
Last Updated on 14 Jul, 2020

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