601238 (Guangzhou Automobile Group Co Ltd) vs Shanghai Composite Comparison

601238

Shanghai Composite

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601238

Shanghai Composite

Difference

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601238

Shanghai Composite

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Shanghai Composite

601238

TSLA

7203

002594

RACE

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Guangzhou Automobile Group Co Ltd
Glance View

Market Cap

60.5B CNY

Industry

Automobiles

In the sprawling landscape of China's automotive industry, Guangzhou Automobile Group Co., Ltd., known as GAC Group, has carved a significant niche, merging local insight with global ambition. Established in 1997, the company quickly transformed into a pivotal player within the sector, leveraging its strategic location in Guangdong Province—a crucial hub for China's automotive manufacturing. GAC Group's operational heartbeat pulses through a diverse portfolio that spans the production of passenger vehicles, commercial vehicles, and motorcycles. By fostering robust joint ventures with international powerhouses like Honda, Toyota, and Mitsubishi, it marries cutting-edge global tech with its expansive domestic distribution network, ensuring its models cater to a broad spectrum of consumers in China and increasingly abroad. Revenue streams for GAC are propelled by a combination of its proprietary brands and its joint venture outputs, capturing a sizable share of the rapidly evolving Chinese market. The company skillfully navigates the competitive landscape by emphasizing innovation, incorporating electric vehicles (EVs) and mobility solutions into its strategic framework, positioning itself for future growth as automotive trends shift towards sustainability. Additionally, GAC Group derives significant income from its financial subsidiaries, offering a suite of automotive financing services that enrich its overall business ecosystem. These initiatives collectively underscore GAC's commitment to adaptability and growth, as it aligns with broader market dynamics and the relentless march of technological advancement.

View Guangzhou Automobile Group Co Ltd Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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US	Tesla Inc NASDAQ:TSLA	Select
JP	Toyota Motor Corp TSE:7203	Select
CN	BYD Co Ltd SZSE:002594	Select
IT	Ferrari NV MIL:RACE	Select
DE	Mercedes Benz Group AG MIL:MBG	Select
DE	Daimler AG XETRA:DAI	Select
DE	Mercedes-Benz Group AG XETRA:MBG	Select
US	General Motors Co NYSE:GM	Select
DE	Dr Ing hc F Porsche AG XETRA:P911	Select
DE	Bayerische Motoren Werke AG XETRA:BMW	Select

US	Tesla Inc NASDAQ:TSLA	Add
JP	Toyota Motor Corp TSE:7203	Add
CN	BYD Co Ltd SZSE:002594	Add
IT	Ferrari NV MIL:RACE	Add
DE	Mercedes Benz Group AG MIL:MBG	Add
DE	Daimler AG XETRA:DAI	Add
DE	Mercedes-Benz Group AG XETRA:MBG	Add
US	General Motors Co NYSE:GM	Add
DE	Dr Ing hc F Porsche AG XETRA:P911	Add
DE	Bayerische Motoren Werke AG XETRA:BMW	Add

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601238

vs

Shanghai Composite

Stocks Performance
601238 vs Shanghai Composite

Performance Gap
601238 vs Shanghai Composite

Performance By Year
601238 vs Shanghai Composite

Competitors Performance
Guangzhou Automobile Group Co Ltd vs Peers

Guangzhou Automobile Group Co Ltd
Glance View

Company

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Tools

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601238 vs Shanghai Composite

Stocks Performance 601238 vs Shanghai Composite

Performance Gap 601238 vs Shanghai Composite

Performance By Year 601238 vs Shanghai Composite

Competitors Performance Guangzhou Automobile Group Co Ltd vs Peers

Guangzhou Automobile Group Co Ltd Glance View

Company

Help

Tools

Stocks

601238

vs

Shanghai Composite

Stocks Performance
601238 vs Shanghai Composite

Performance Gap
601238 vs Shanghai Composite

Performance By Year
601238 vs Shanghai Composite

Competitors Performance
Guangzhou Automobile Group Co Ltd vs Peers

Guangzhou Automobile Group Co Ltd
Glance View