HK Stock Market Move | Guangzhou Automobile Group (02238) rose more than 4% in early trading. GAC Aion is waiting for the right time to advance the capitalization process.

Guangzhou Automobile Group (02238) rose more than 4% in early trading, up 3.74% as of the time of writing, at HK$3.05, with a turnover of HK$83.9923 million. In terms of news, Guangzhou Automobile Group responded on the interactive platform regarding the news of GAC Aion planning an IPO in Hong Kong, stating that it will wait for the right timing to proceed with the capitalization process, taking into account factors such as corporate operations, capital market trends, regulatory environment, and market valuation, in order to maximize shareholder interests. In addition, Guangzhou Automobile Group stated that the first vehicle model developed in collaboration with Huawei is expected to be launched in 2026. Morgan Stanley previously released a research report stating that Guangzhou Automobile Group's profits last year significantly declined, with concerns about the development of its own-brand products in the market. However, signs of improvement in sales of joint-venture brands have been observed, and the group is optimistic that through integration and cost reduction, it can support the narrowing of losses and profit recovery for its own-brand products. Morgan Stanley stated that market expectations for GAC are currently low, therefore maintaining a "hold" rating with a target price lowered from HK$3.5 to HK$3.4.