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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 2021 HKDUSD
Revenue91,205.26M11,733.84M
Gross Profit4,208.56M541.44M
Operating income-5,404.64M-695.32M
Income before tax-4,811.58M-619.02M
Net income9,052.37M1,164.61M
EBITDA1,396.10M179.61M
Diluted EPS0.870.11
Dividends Per Share0.250.03
Total Assets188,689.44M24,202.43M
Total liabilities72,943.51M9,356.17M
Total equity110,203.32M14,135.33M
Operating cash flow5,746.53M739.30M
Currency in HKDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 82,532.12M 85,730.51M 67,699.71M 70,969.08M 91,205.26M
Gross Profit 14,524.57M 13,345.35M 2,506.46M 2,136.92M 4,208.56M
Operating income 5,817.93M 2,419.78M -5,789.95M -5,144.32M -5,404.64M
Income before tax 4,494.60M 3,683.59M -3,523.84M -4,358.82M -4,811.58M
Net income 12,689.34M 12,910.07M 7,502.29M 6,701.76M 9,052.37M
EBITDA 8,369.87M 5,846.54M -1,010.32M 503.94M 1,396.10M
Diluted EPS 1.15 1.06 0.64 0.58 0.87
Dividends Per Share 0.46 0.43 0.21 0.21 0.25
Total Assets 143,641.01M 150,725.28M 153,766.09M 169,381.37M 188,689.44M
Total liabilities 55,576.04M 58,360.93M 58,345.18M 63,825.23M 72,943.51M
Total equity 83,050.70M 87,080.99M 89,698.05M 99,753.11M 110,203.32M
Operating cash flow 24,773.85M 6,421.69M 5,863.32M 7,637.31M 5,746.53M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 10,590.79M 10,938.43M 8,640.45M 9,150.22M 11,733.84M
Gross Profit 1,863.84M 1,702.74M 319.89M 275.51M 541.44M
Operating income 746.57M 308.74M -738.96M -663.27M -695.32M
Income before tax 576.76M 469.99M -449.74M -561.99M -619.02M
Net income 1,628.33M 1,647.20M 957.51M 864.07M 1,164.61M
EBITDA 1,074.05M 745.96M -128.94M 64.97M 179.61M
Diluted EPS 0.14 0.13 0.08 0.07 0.11
Dividends Per Share 0.05 0.05 0.02 0.02 0.03
Total Assets 18,374.76M 19,251.31M 19,734.34M 21,844.81M 24,202.43M
Total liabilities 7,109.36M 7,454.12M 7,488.02M 8,231.42M 9,356.17M
Total equity 10,623.96M 11,122.37M 11,511.85M 12,864.97M 14,135.33M
Operating cash flow 3,179.06M 819.35M 748.33M 984.69M 739.30M

Valuation Measures

Dec 2021
PER7.11
ROA5.05%
ROE8.62%
Operating margin-5.92%
Profit margin9.92%

Key executives

  • General Manager & Executive Director: Xing Ya Feng
  • Chief Financial Officer & Deputy General Manager: Dan Wang
  • Deputy General Manager: Shao Li
  • Chief Accountant: Xiuyun Jiang
  • Secretary: Li Sui

Shareholders

  • Guangzhou State-Owned Assets Supervision & Admin. Commission (9.7%)
  • Aegon-Industrial Fund Management Co., Ltd. (4.9%)
  • Fidelity Management & Research Co. LLC (4.3%)
  • The Vanguard Group, Inc. (3.4%)
  • JPMorgan Investment Management, Inc. (2.3%)
  • FIAM LLC (2.1%)
  • BlackRock Fund Advisors (1.7%)
  • Penghua Fund Management Co., Ltd. (1.7%)
  • Strategic Advisers LLC (1.3%)
  • ICBC Credit Suisse Asset Management Co., Ltd. (1.1%)

Contact Details

  • Website:http://www.gac.com.cn
  • Address: GAC Center, No. 23 Xingguo Road, Guangzhou, 510623, China
  • Phone: +86.20.83150.086

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.
  • GAC 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
  • Chongqing Changan Automobile Company Limited Class A
  • Carasso Motors Ltd
Last Updated on 30 Jun, 2022

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