GAC GROUP Launches Huilun Tech, a Robot Company Focused on Embodied Intelligence, Aiming to Initiate Small Batch Trial Production of Key Products This Year

Written by Emily J. Thompson, Senior Investment Analyst

Source: aastocks

Updated: 4 days ago

0mins

02238-4.38%

Should l Buy 02238?

Source: aastocks

GAC GROUP's New Robot Launch: GAC GROUP unveiled its fourth-generation humanoid robot, GoMate Mini, at the GDD - Huangpu District High-quality Development Conference.
Establishment of Huilun Technology: The company announced the establishment of Guangdong Huilun Technology Co., Ltd., which will focus on the trial production of core products and application scenarios in security.

Trade with 70% Backtested Accuracy

Stop guessing "Should I Buy 02238?" and start using high-conviction signals backed by rigorous historical data.

Analyst Views on 02238

Wall Street analysts forecast 02238 stock price to rise

0 Analyst Rating

0 Buy

0 Hold

0 Sell

Current: 3.650

Low

Averages

High

Current: 3.650

Low

Averages

High

Citi

Citi Research

Sell

Neutral

upgrade

2026-02-27

New

Reason

Citi

Citi Research

Price Target

AI Analysis

2026-02-27

New

upgrade

Sell

Neutral

Reason

The analyst rating for GAC GROUP was influenced by several factors outlined in the article. Citi Research maintained a Neutral rating for the company's H-shares while upgrading the A-shares from Sell to Neutral. The reasons for these ratings include: 1. Expected Net Loss: GAC GROUP announced a preliminary net loss attributable to shareholders between RMB8-9 billion for 2025, primarily due to higher asset impairments and a decline in investment income from joint ventures. 2. Revised Forecasts: Citi Research lowered its forecasts for GAC GROUP's losses for 2025-2027, reflecting a more conservative outlook based on actual sales performance and industry conditions. 3. Technological Advancements: The broker noted advancements in robotics technology and GAC GROUP's partnership with Huawei, which could positively impact future performance. 4. Target Price Adjustments: The target price for H-shares was increased from $3 to $3.8, and for A-shares from RMB7.2 to RMB8.1, indicating a more favorable view despite the current losses. 5. Market Conditions: After an 11% decline in A-share price over the past year, the risk-reward profile was deemed neutral, prompting the upgrade in rating. Overall, the combination of expected losses, revised forecasts, potential technological benefits, and recent price declines contributed to the analyst's rating decision.

UBS

Underperform

maintain

$4.2

2026-02-02

Reason

UBS

Price Target

$4.2

2026-02-02

maintain

Underperform

Reason

The analyst rating for GAC GROUP (02238.HK) is primarily influenced by the company's projected significant net loss for 2025, estimated to be between RMB8 billion and RMB9 billion, which is substantially worse than BofA Securities' expectation of RMB3.9 billion. Additionally, the core net loss, excluding one-off items, is projected to be between RMB8.9 billion and RMB9.9 billion, indicating a drastic decline in profitability compared to the previous year. The intense competition in the market is expected to continue compressing profit margins for the Group's proprietary brand, leading to a forecast of thin profitability for 2026 and 2027. As a result, UBS has maintained a Neutral rating with a target price of $4.2, while also keeping an Underperform rating on both GAC GROUP's H- and A-shares, with target prices set at $3.1 and RMB5.9, respectively.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for 02238

Unlock Now

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

GAC GROUP Aims to Resume Vehicle Production and Achieve 2 Million Car Sales This Year

4 days agoaastocks

Company Performance: GAC GROUP aims to achieve a vehicle production and sales target of 2 million units for the year, indicating a focus on growth and operational efficiency.
Market Activity: The company experienced a short selling activity of $1.42 million, with a short selling ratio of 11.761%.

Citi Assigns Neutral Rating to GAC GROUP (02238.HK) and Sets Target Price at $3.8

4 days agoaastocks

Preliminary Results: GAC GROUP expects a net loss of RMB8-9 billion for 2025 due to increased asset impairments and reduced investment income from joint ventures, according to Citi Research.
Forecast Adjustments: Citi Research has revised its loss forecasts for GAC GROUP for 2025-2027 to RMB8.56 billion, RMB4.94 billion, and RMB2.07 billion, reflecting a conservative industry outlook.
Target Price Changes: The target price for GAC GROUP's H-shares has been raised from $3 to $3.8, while the A-shares target price increased from RMB7.2 to RMB8.1, with both ratings adjusted to Neutral.
Market Performance: After an 11% decline in A-share price over the past year, Citi Research believes the risk-reward for GAC GROUP now appears neutral.