Introduction to this report:
On February 4, 2026, Changan Automobile issued an announcement stating its plan to repurchase company shares using 1–2 billion yuan of its own funds. Given the company’s steadily advancing electrification and intelligentization strategies, we maintain our “Add” rating.
Investment Highlights:
We maintain a “Buy” rating. Given the company’s steadily advancing electrification and intelligentization strategies, we expect its EPS for 2025/26/27 to be RMB 0.56/0.79/1.01, respectively. Based on comparable companies, we assign the company a 17x PE multiple for 2026, corresponding to a target price of RMB 13.47. We maintain a “Buy” rating.
Event: On February 4, 2026, Changan Automobile issued an announcement stating its plan to repurchase company shares using 1–2 billion yuan of its own funds. In this share repurchase, the amount for A‑share repurchases will be no less than 0.7 billion yuan and no more than 1.4 billion yuan, while the amount for B‑share repurchases will be no less than 0.3 billion yuan and no more than 0.6 billion yuan; all shares repurchased will be used to reduce the company’s registered capital. We believe that this repurchase reflects the company’s firm confidence in its long‑term strategic layout and intrinsic value.
In 2025, new energy vehicle sales will see strong growth, with an overall sales target of 3.3 million vehicles in 2026.
In 2025, the company achieved cumulative sales of 2.913 million vehicles, up 8.5% year-on-year, with new energy vehicle sales reaching 1.109 million units, up 51.1% year-on-year; the new energy penetration rate was 38.1%, up 11.7 percentage points year-on-year. The company plans to further strengthen its new energy product portfolio in 2026, setting a total sales target of 3.3 million vehicles for 2026, up 13.3% year-on-year; among them, new energy vehicles will account for 1.4 million units, up 26.2% year-on-year; and overseas sales will reach 750,000 units, up 17.7% year-on-year.
Changan Automobile unveiled its sodium‑ion battery strategy and debuted its first mass‑produced sodium‑ion vehicle. On February 5, 2026, Changan Automobile held the “Tianzhu Intelligent New Safety Achievements Release & Sodium‑Ion Battery Strategy Global Launch Event,” officially announcing its sodium‑ion battery development strategy and debuting its first mass‑produced passenger car equipped with sodium‑ion batteries. The sodium‑ion batteries installed in the vehicle are supplied by CATL and utilize CATL’s third‑generation CTP cell‑to‑pack technology, achieving a system energy density of up to 175 Wh/kg and a pure electric range exceeding 400 kilometers. The company stated that multiple brands—including Avatr, Deepal, Qiyuan, and Gravity—will successively launch sodium‑ion vehicles in the future.
Changan Automobile continues to advance its industrialization efforts in the fields of advanced intelligent driving and robotics. In December 2025, Changan Automobile obtained the first official license plate dedicated to L3‑level autonomous driving, marking that the company now possesses the compliant qualifications to scale up the commercial operation of L3‑level intelligent driving products in the market, while also solidifying its leading position in the commercial deployment of advanced intelligent driving. In terms of forward‑looking planning, the company announced at the end of 2025 its intention to invest 0.225 billion yuan to establish “Changan Tianzhu Intelligent Robot Technology Co., Ltd.”, with a registered capital of 0.45 billion yuan. The company will enter the humanoid, in‑vehicle, and service robots sectors under a “1+N+X” model, ushering in a new stage of development characterized by bidirectional empowerment through the integration of automobiles and robotics.
Risk Warning: Significant increases in raw material costs; new car sales fall short of expectations.
