Event Description
Recently, Changan Automobile announced its plan to repurchase A‑share and B‑share stocks for the purpose of reducing its registered capital, with funds coming from its own resources. The total repurchase amount will be 1–2 billion, of which 0.7–1.4 billion will be for A‑shares and 0.3–0.6 billion for B‑shares.
Event Commentary
Large-scale share repurchases are expected to boost investor confidence. This repurchase will be used to reduce the registered capital, with funds sourced from the company’s own reserves and executed via a block trade auction. The upper limit of the repurchase price will not exceed 150% of the average price over the 30 trading days prior to the board’s approval, and the repurchase period will be within 12 months following approval. The total repurchase amount will range from 1 billion to 2 billion, with 700 million to 1.4 billion for A shares and 300 million to 600 million for B shares. The substantial repurchase amount fully demonstrates the company’s confidence in long‑term development and its commitment to shareholder returns.
In 2025, Changan Automobile’s sales performance remained steady. Total annual sales reached 2.913 million vehicles, an increase of 8.5% year-on-year, marking a nine‑year high. Among them, new energy vehicle sales amounted to 1.109 million units, up 51.1% year-on-year, with new energy business emerging as the core driver of growth. The company has clear future development goals: a full‑year sales target of 3.3 million vehicles in 2026, representing a 13.3% year‑on‑year increase. New energy vehicle sales are projected to reach 1.4 million units, up 26.2% year-on‑year. By 2028, the company aims to achieve cumulative sales of 40 million vehicles for Chinese brands; by 2030, its annual production and sales target will be 5 million vehicles, with new energy accounting for 60% and overseas markets contributing 35%. Over the next three years, the company plans to launch 43 new models, covering more than 140 countries and regions, providing strong support for sustained sales growth. On the overseas market front, overseas sales in 2025 reached 637,000 vehicles, up 18.9% year-on‑year. The 2026 overseas sales target is 750,000 vehicles, representing a 17.7% year‑on‑year increase, and overseas markets are poised to become a new engine of growth.
The proposed additional share issuance is intended to continuously enhance the competitiveness of the new energy vehicle market. In January 2026, the company announced its plan to issue up to 6 billion yuan in new shares, with 4.5 billion yuan earmarked for the development of new energy vehicle models and digital intelligence platforms—a project that encompasses the development of multiple new energy vehicle models and the creation of a digital intelligence platform. Another 1.5 billion yuan is planned to be invested in the construction of a global R&D center and the enhancement of core capabilities, primarily for the construction of the second phase of the Global R&D Center and the improvement of new vehicle testing and validation capabilities, thereby strengthening R&D strength and intelligent testing capabilities. In December 2025, the company obtained the first batch of L3-level autonomous driving product access permits and secured China’s inaugural dedicated L3-level official license plate. The implementation of these projects will help to steadily advance the “Shangri-La” plan for new energy vehicles and the “Beidou Tianxu” plan for intelligentization, enhancing the company’s competitive edge in the new energy vehicle market.
The company will accelerate the development and commercialization of emerging industries such as humanoid robots with embodied intelligence and flying cars. It aims to achieve mass production of humanoid robots by 2028 and launch commercial flight‑car routes by 2030. Centered on core application scenarios, the company is strategically deploying intelligent automotive robot technologies and businesses under a “1+N+X” framework. Specifically, the “brain” leverages Changan’s accumulated expertise in intelligent driving technology, partnering with leading tech firms to build robust computing infrastructure and develop large-scale models; the “cerebellum” collaborates with industry leaders and small and medium-sized enterprises to integrate core technologies and ensure independent, controllable operations.
Investment Recommendation
In the short term, with the continuous launch of the company’s highly competitive new products, sales are expected to maintain steady growth.
In the medium to long term, as the company continues to deepen its overseas market presence and new industries such as robotics and flying cars begin to take shape, it is poised to develop new growth engines.
We expect the company’s revenue for 2025–2027 to be 165.225 billion, 176.569 billion, and 200.672 billion yuan, respectively; net profit attributable to parent company to be 5.642 billion, 6.515 billion, and 8.073 billion yuan, respectively, with EPS of 0.57, 0.66, and 0.81 yuan, corresponding to P/E ratios of 20x, 17x, and 14x as of February 11, 2026. We initiate coverage with a “Buy-A” rating.
Risk Warning
Increased Industry Competition Risk: Competition in the automotive industry continues to intensify, and price wars within the sector may exert ongoing pressure on the company’s product pricing and gross profit margin.
Technological Iteration Risk: The automotive industry is undergoing rapid technological transformation driven by “electrification and intelligentization.”
If there are significant changes to the technology roadmap or if competitors achieve breakthrough innovations, the company’s existing technological advantages may be weakened.
Risks Associated with Macroeconomic Cycle Fluctuations: The automotive industry is highly correlated with overall macroeconomic conditions. Should the macroeconomic environment experience fluctuations, the company may face operational challenges such as declining sales.
There are still uncertainties and associated risks regarding the repurchase.
