<div id="readability-page-1"><div><p>BofAS issued a research report stating that GAC GROUP (02238.HK)<span> </span><span> +0.060 (+2.128%)  </span> <span> Short selling $9.65M; Ratio 58.964%  </span>  recorded revenue of RMB20.2 billion in 1Q26, up 2% YoY. However, gross margin fell to negative 2.7%, down 1.6 ppts YoY, mainly due to rising raw material prices. During the period, profit from joint ventures and associates amounted to RMB1.2 billion, up 6% YoY, primarily driven by a 7% moderate sales growth of GAC Toyota. Net loss in 1Q26 narrowed to RMB656 million from RMB732 million in the same period last year, accounting for 37% of the brokers full-year forecast. Excluding one-off items, net loss amounted to RMB1.4 billion.</p><p>BofAS expects intense competition to weigh on the profitability of GAC GROUPs proprietary brands, leading to weak earnings capability in 2026 and 2027. The broker reiterated its Underperform rating on both the H-shares and A-shares of GAC GROUP, with a TP of HKD3.2 for the H-shares and RMB6 for GAC GROUP (601238.SH)<span> </span><span> 0.000 (0.000%)  </span>  A-shares. (ec/a)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-04 16:25.) (A Shares quote is delayed for at least 15 mins.)</p></div><p>This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.</p></div>

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<p>BofAS reported that GAC GROUPexperienced a revenue increase of 2% YoY to RMB20.2 billion in 1Q26, but its gross margin fell to -2.7%. Profit from joint ventures rose 6% YoY to RMB1.2 billion, while net loss narrowed to RMB656 million. BofAS maintains an Underperform rating for GAC GROUP, citing intense competition affecting profitability, with a target price of HKD3.2 for H-shares and RMB6 for A-shares.</p>

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GAC Group

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BofAS: GAC GROUP  1Q26 Gross Margin Deteriorates; Reiterates Underperform