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Consumer Durables

Guangzhou Automobile Group Co., Ltd.

  • 6.92 HKD
  • +0.13
  • +1.91%
  • China
    Aug 17, 2018
  • Ticker
    HKG(2238)
  • Prev. close
    6.79
  • Market cap (HKD)
    103,563.02M
  • Market cap (USD)
    13,193.41M
  • Shares
    10,214.70M

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 2017 HKDUSD
Revenue79,594.34M10,213.80M
Gross Profit15,655.49M2,008.96M
Operating income5,842.54M749.73M
Income before tax4,307.07M552.69M
Net income12,437.44M1,596.01M
EBITDA8,468.92M1,086.76M
Diluted EPS1.320.17
Dividends Per Share0.460.05
Total Assets143,576.16M18,366.46M
Total liabilities55,721.15M7,127.92M
Total equity82,985.84M10,615.66M
Operating cash flow23,677.95M3,038.43M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 23,075.02M 27,356.71M 35,437.95M 55,965.89M 79,594.34M
Gross Profit 2,442.64M 3,094.21M 4,379.86M 9,210.37M 15,655.49M
Operating income -1,050.61M -1,472.85M -482.02M 2,323.70M 5,842.54M
Income before tax -1,732.57M -1,318.51M -286.03M 1,537.72M 4,307.07M
Net income 3,367.42M 4,009.53M 5,220.52M 7,347.26M 12,437.44M
EBITDA 149.63M 61.40M 1,576.52M 4,770.76M 8,468.92M
Diluted EPS 0.36 0.44 0.58 0.80 1.32
Dividends Per Share 0.14 0.14 0.17 0.24 0.46
Total Assets 74,016.48M 77,896.44M 80,162.78M 91,585.47M 143,576.16M
Total liabilities 29,403.92M 31,545.75M 31,821.71M 39,635.18M 55,721.15M
Total equity 42,596.13M 44,148.23M 46,060.52M 48,438.79M 82,985.84M
Operating cash flow 5,095.24M 6,865.03M 11,695.88M 12,296.73M 23,677.95M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 2,974.87M 3,527.76M 4,571.12M 7,209.81M 10,213.80M
Gross Profit 314.91M 399.01M 564.95M 1,186.52M 2,008.96M
Operating income -135.44M -189.93M -62.17M 299.35M 749.73M
Income before tax -223.36M -170.02M -36.89M 198.09M 552.69M
Net income 434.13M 517.04M 673.39M 946.51M 1,596.01M
EBITDA 19.29M 7.91M 203.35M 614.59M 1,086.76M
Diluted EPS 0.04 0.05 0.07 0.10 0.17
Dividends Per Share 0.01 0.01 0.02 0.03 0.05
Total Assets 9,545.89M 10,044.86M 10,343.38M 11,812.67M 18,366.46M
Total liabilities 3,792.21M 4,067.87M 4,105.94M 5,112.13M 7,127.92M
Total equity 5,493.61M 5,692.98M 5,943.17M 6,247.62M 10,615.66M
Operating cash flow 656.88M 885.27M 1,508.64M 1,584.12M 3,038.43M

Valuation Measures

Dec 2017
PER9.73
ROA10.57%
ROE18.92%
Operating margin7.34%
Profit margin15.62%

Key executives

  • General Manager & Executive Director: Xing Ya Feng
  • Chief Financial Officer & Deputy General Manager: Dan Wang
  • Chief-Accounting: Can Hui Li

Shareholders

  • Guangzhou State-Owned Assets Supervision & Admin. Commission (9.4%)
  • Schroder Investment Management Ltd. (6.0%)
  • Norges Bank Investment Management (4.9%)
  • Westwood Global Investments LLC (4.8%)
  • The Vanguard Group, Inc. (3.4%)
  • BlackRock Fund Advisors (2.5%)
  • First Seafront Fund Management Co., Ltd. (1.2%)
  • Old Mutual Global Investors (UK) Ltd. (1.1%)
  • Hang Seng Investment Management Ltd. (1.0%)
  • JPMorgan Investment Management, Inc. (0.9%)

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

  • 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.
  • GAC Fiat Automobiles Co., Ltd.
  • Changfeng Co. Ltd.
  • Zhejiang Gonow Automobile Co., Ltd.
  • GAC Changfeng Motor Co. Ltd.
  • China Lounge Investments Ltd.
  • Denway Motors Ltd.

Competitors

  • SAIC Motor Corporation Limited Class A
  • BAIC Motor Corporation Limited Class H
  • Dongfeng Motor Group Co., Ltd. Class H
  • Great Wall Motor Co., Ltd. Class H
  • Chongqing Changan Automobile Company Limited Class B
  • FAW Car Co., Ltd. Class A
  • Geely Automobile Holdings Limited
  • Shanghai Shenhua Holdings Co., Ltd. Class A
  • Hengli Industrial Development Group Co. Ltd. Class A
Last Updated on 17 Aug, 2018

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