JPMorgan has issued a research report stating that, amid a weak domestic automotive market, persistent price competition, and concerns over the recovery of joint venture brand profitability and potential asset impairments for its proprietary brands, GAC GROUP (02238) shares have fallen 46% year-to-date, underperforming the broader China auto sector's 17% decline. Consequently, the firm has reduced its target price from HK$3.3 to HK$1.1 and downgraded its rating from "Neutral" to "Underweight".

The bank noted that the company's first-half earnings preview once again fell short of expectations. While management previously guided for an improvement this year, the outlook remains uncertain given weak industry demand and ongoing restructuring across brands. JPMorgan now forecasts adjusted net losses per share of RMB 0.48 and RMB 0.05 for 2026 and 2027, respectively, compared to prior projections of a loss of RMB 0.08 per share and a profit of RMB 0.07 per share. The firm now anticipates the company will return to profitability in 2028.