<div id="readability-page-1"><div>JPMorgan issued a research report stating that GAC GROUP (02238.HK) +0.050 (+1.773%) Short selling $16.75M; Ratio 10.075% recorded 1Q revenue growth of 11% YoY and sales growth of 2% YoY. However, gross margin remained close to break-even at only 0.9%, down 1.1 ppts YoY, affected by cost inflation and weak sales volume. Net loss during the period narrowed by 10% YoY, while losses from proprietary brands continued to be the key structural drag on overall profitability.Management plans to launch more than 11 new or facelifted models in 2026, focusing on upgrades in new energy vehicles, targeting a 25% reduction in mass-production model costs, and striving to double overseas sales volume. The broker welcomed managements initiatives but adopted more conservative assumptions amid intense competition in China and global markets, expecting GAC to turn profitable only in 2027.JPM maintained its Neutral rating on both the H shares and A shares of GAC GROUP. The TP for the H shares is HKD3.3, while the TP for GAC GROUP (601238.SH) 0.000 (0.000%) A shares is RMB8, based on projected 2026 price-to-book ratios of 0.3x and 0.8x respectively, reflecting short-term competitive pressures and a long-term recovery trend. (ec/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-30 16:25.) (A Shares quote is delayed for at least 15 mins.)</div>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.</div>

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JPMorgan maintains a Neutral rating on GAC GROUPwith a target price of HKD3.3. The company reported a 1Q revenue growth of 11% YoY, but gross margin was low at 0.9%. Net loss narrowed by 10% YoY, with management planning to launch over 11 new models in 2026. Despite these initiatives, JPMorgan expects GAC to remain unprofitable until 2027 due to competitive pressures. Target prices for A shares are set at RMB8, reflecting short-term challenges and a long-term recovery outlook.

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JPMorgan Chase

JPMORGAN CHASE & CO. 4.20% DEP SHS REPSTG 1/400TH PFD SER MM

JPMORGAN CHASE & CO. 6%NON CUM DEP SHS REP 1/400TH PFD SER EE

JPMORGAN CHASE & CO. DEP REP 1/400TH (5.75% NON CUM PFD DD)

JPMORGAN CHASE & CO. 4.625% DEP SH RE 1/400TH INT NO CU PF LL

JPMorgan Chase & Co.

JPMORGAN CHASE & CO. 4.55% DEP SHS REPSTG 1/400TH PFD SER JJ

JPMORGAN CHASE & CO. 4.75 DEP SHS REP 1/400 NCUM PFD SR GG

JPM Maintains Neutral on GAC GROUP , TP HKD3.3