Chongqing Changan Automobile Co Ltd

Chongqing Changan maintains a market capitalization of CNY 68.57 billion and a price-to-earnings ratio of 40.97, indicating a premium valuation relative to earnings. The company's liquidity position is characterized by a current ratio of 1.26 and a debt-to-equity ratio of 0.03, suggesting a conservative capital structure with limited leverage. However, the risk assessment flags a negative net cash position after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics show a return on equity of 2.33% and a return on assets of 0.89%, both below the industry median for auto manufacturers, which typically exceed 5% and 3%, respectively. Gross profit of CNY 4.24 billion and operating income of CNY 1.49 billion reflect modest margins, with operating margins at 3.75% and net margins at 4.22%. These figures suggest the company is under pressure from cost inflation or pricing competition.

The company's revenue is concentrated in China, with no disclosed international revenue breakdown in the latest financials. This geographic concentration exposes the company to domestic economic cycles and regulatory shifts, particularly in the automotive sector, which is subject to frequent policy changes in China.

Outlook data indicates a projected revenue growth of 5.2% in the current fiscal year and 3.8% in the next, driven by market share gains in the domestic EV segment. However, the company's capital expenditure of CNY 1.20 billion in the latest period suggests ongoing investment in production capacity and R&D, which may moderate near-term profit growth.

Risk factors include liquidity constraints due to negative net cash and a medium liquidity risk rating. The dilution risk is assessed as low, with no significant dilution events in the past 12 months and no recent ATM or shelf offerings. Analysts have issued a mean price target of CNY 13.18, with a median of CNY 12.77, indicating a consensus for upside from the current market price of CNY 8.29.

Recent filings and transcripts highlight the company's strategic focus on electrification and partnerships with tech firms to develop autonomous driving capabilities. These initiatives align with broader industry trends but require sustained R&D investment, which may impact short-term profitability.

Chongqing Changan Automobile Co Ltd (000625.SZ) has undergone a significant structural update in its corporate taxonomy, now formally classified as an "Auto & Truck Manufacturer" within the "Consumer Cyclicals" economic sector. This reclassification, marked as a medium-severity change, establishes a clearer framework for understanding the company's operational focus and its exposure to cyclical market dynamics. By defining its activity and sector explicitly, the company’s profile aligns more precisely with industry standards, facilitating better comparative analysis against peers in the automotive manufacturing space. In parallel with the sectoral redefinition, the company’s risk assessment profile has been initialized with specific metrics. The dilution risk is now assessed as "low," indicating a stable capital structure with minimal immediate threat of share value erosion from new issuances. This low dilution risk suggests that current equity holders are protected from significant short-term dilution pressures, providing a degree of stability in the ownership structure. Conversely, the liquidity risk has been categorized as "medium." This assessment highlights a moderate level of concern regarding the company's ability to meet short-term financial obligations or convert assets to cash without significant loss. While not critical, a medium liquidity risk warrants attention from investors monitoring the company's cash flow management and working capital efficiency, particularly in the context of the capital-intensive automotive industry. These updates occur against a backdrop of limited external analyst coverage, with zero analysts currently tracking the stock and no index memberships recorded. The company is led by seven officers, and the absence of top holder data suggests a potentially dispersed or opaque ownership structure. The combination of newly defined sectoral identity and specific risk metrics provides a foundational baseline for future financial analysis, even in the absence of active analyst estimates or ESG ratings.

Analysts project 48.6% upside to a mean price target of 13.18, signaling strong market confidence in future performance.

Operating margin of 3.75% exceeds the 2.38% cohort median, demonstrating superior operational efficiency relative to auto peers.

Net margin of 4.22% outperforms the 2.99% industry median, indicating stronger profitability retention than most competitors.

Cash conversion ratio of 2.05 significantly surpasses the 0.62 cohort median, highlighting robust cash generation capabilities.

Debt-to-equity ratio of 0.03 is well below the 0.21 median, reflecting a conservative capital structure with low leverage risk.

Return on equity of 2.33% lags the 3.96% cohort median, suggesting inefficient use of shareholder capital compared to peers.

Long-term debt increases to 4.56 billion CNY in FY2026, marking a rising leverage trend despite low absolute levels.

Revenue ¥49.07B, +0,6% YoY; Operating income −65,7% YoY.

• ▍Revenue ¥49.07B, +0,6% YoY
• ▍Operating income −65,7% YoY
• ▍Net income −72,7% YoY
• ▍Net margin 2.1%

Revenue ¥42.24B, +23,4% YoY; Operating income −44,1% YoY.

• ▍Revenue ¥42.24B, +23,4% YoY
• ▍Operating income −44,1% YoY
• ▍Net income +2,1% YoY
• ▍Net margin 1.8%

Revenue ¥38.53B, −2,9% YoY; Operating income −42,0% YoY.

• ▍Revenue ¥38.53B, −2,9% YoY
• ▍Operating income −42,0% YoY
• ▍Net income −43,9% YoY
• ▍Net margin 2.4%

Revenue ¥34.16B; Operating income ¥1.24B.

• ▍Revenue ¥34.16B
• ▍Operating income ¥1.24B
• ▍Net margin 4.0%

Revenue ¥48.77B; Operating income ¥3.81B.

• ▍Revenue ¥48.77B
• ▍Operating income ¥3.81B
• ▍Net margin 7.7%

Revenue ¥34.24B; Operating income ¥524.6M.

• ▍Revenue ¥34.24B
• ▍Operating income ¥524.6M
• ▍Net margin 2.2%

Revenue ¥39.70B; Operating income ¥1.49B.

• ▍Revenue ¥39.70B
• ▍Operating income ¥1.49B
• ▍Net margin 4.2%

Revenue ¥164.00B, +2,7% YoY; Operating income −44,0% YoY.

• ▍Revenue ¥164.00B, +2,7% YoY
• ▍Operating income −44,0% YoY
• ▍Net income −44,3% YoY
• ▍Free cash flow −63,7% YoY
• ▍Net margin 2.5%

Revenue ¥159.73B, +5,6% YoY; Operating income −36,6% YoY.

• ▍Revenue ¥159.73B, +5,6% YoY
• ▍Operating income −36,6% YoY
• ▍Net income −35,4% YoY
• ▍Free cash flow −62,6% YoY
• ▍Net margin 4.6%

Revenue ¥151.30B, +24,8% YoY; Operating income +36,9% YoY.

• ▍Revenue ¥151.30B, +24,8% YoY
• ▍Operating income +36,9% YoY
• ▍Net income +45,2% YoY
• ▍Free cash flow +13,6% YoY
• ▍Net margin 7.5%

Revenue ¥121.25B, +15,3% YoY; Operating income +104,6% YoY.

• ▍Revenue ¥121.25B, +15,3% YoY
• ▍Operating income +104,6% YoY
• ▍Net income +119,5% YoY
• ▍Free cash flow +115,7% YoY
• ▍Net margin 6.4%

Revenue ¥105.14B; Operating income ¥3.73B.

• ▍Revenue ¥105.14B
• ▍Operating income ¥3.73B
• ▍Net margin 3.4%