Event Description
On February 4, 2026, Changan Automobile announced a share repurchase plan, intending to use its own funds to repurchase shares with a total amount no less than 1 billion yuan (inclusive) and no more than 2 billion yuan (inclusive).
Event Commentary
The launch of the share repurchase plan highlights the company’s growth prospects and strengthens investor confidence. Under this repurchase plan, the A‑share repurchase will be no less than 0.7 billion (inclusive) and no more than 1.4 billion (inclusive), while the B‑share repurchase will be no less than 0.3 billion (inclusive) and no more than 0.6 billion (inclusive).
The upper limit of the repurchase price shall not exceed 150% of the average trading price of the company’s shares over the 30 trading days prior to the date on which the board of directors approves the repurchase plan. The repurchased shares will be used to reduce the company’s registered capital, and the implementation period shall not exceed 12 months from the date on which the shareholders’ meeting approves the final share repurchase plan. This repurchase is based on the company’s firm confidence in its strategic development prospects and intrinsic value, while also actively safeguarding the company’s value and shareholders’ rights and interests, enhancing earnings per share, and bolstering investor confidence.
EHang is actively working to democratize intelligent driving, proactively laying out plans for robotics and flying car businesses to forge future competitiveness. Changan Automobile has obtained the nation’s first official license plate dedicated to L3‑level autonomous driving, marking the dawn of the L3 era for Tianxu Intelligence. Currently, Changan Automobile adopts a strategy of in‑house R&D combined with strategic partnerships to accelerate the democratization of intelligent driving. In terms of cooperation, Changan is promoting the application of technologies such as Huawei’s Qiankun Intelligent Driving and the HarmonyOS system on Avatr and Deepal models. On the in‑house R&D front, Changan adheres to the principle of “no safety, no intelligent driving,” and is steadily rolling out intelligent driving solutions that cater to various price points. In the realm of robotics, Changan is strategically positioning itself around core scenarios, deploying an “1+N+X” approach to smart automotive robotics technology and business. By collaborating with leading partners, Changan is jointly developing humanoid robots and plans to release a prototype in 2026. As for flying cars, Changan has formed a strong partnership with EHang, establishing a joint venture to jointly advance the R&D and commercialization of flying cars.
The company boasts strong capabilities in developing new products and has successfully embarked on an independent transformation, leveraging electric and intelligent technologies to usher in a new phase of growth while rapidly expanding its overseas operations. Changan Automobile possesses a robust brand positioning and formidable R&D expertise. In the current wave of new energy vehicles, the company is actively pursuing an intelligent, electric transformation through its multiple brands—Changan Qiyuan, Deepal, and Avatr—while accelerating the development of blockbuster products. Regarding the “Shangri-La” new energy initiative, it is expected that by the third quarter of 2026, Changan’s solid‑state battery, housed within the “Golden Shield” safety enclosure, will have completed robotic integration and vehicle‑mounting validation. Focusing on the global “Embracing All Rivers” strategy, the company is accelerating its localization efforts overseas; as of January 2026, Changan Automobile had established a presence in 117 countries worldwide, launching 41 vehicle models and continuously refining its global strategic footprint.
The company’s electric and intelligent transformation is accelerating, with its overseas expansion gaining momentum, driving sustained sales growth and continuously empowering efficiency improvements through the new central enterprise platform. The company is speeding up its new energy transition, with steadily increasing sales of self‑developed new energy vehicles. As new models are launched, sales are expected to see a strong boost, and the enhanced scale effect is likely to further improve profitability. The intelligent transformation is progressing steadily, with ongoing deepening of cooperation with Huawei in the field of intelligent technologies; the pace of global deployment is clear, and overseas production capacity continues to be built. The company’s electric and intelligent transformation is accelerating, and expectations of rising sales continue to drive performance realization. We estimate that net profit attributable to parent company in 2025/2026 will be 5.16/7.59 billion yuan, corresponding to P/E ratios of 21.5/14.7x, and we maintain a “Buy” rating.
Risk Warning
1. Market demand has fallen short of expectations.
2. Intensified industry competition is eroding corporate profitability.
