In-depth Analysis of Changan Automobile's Private Placement Price Adjustment

According to the latest announcement, Changan Automobile (000625.SZ) released the 2025 plan for issuing A-shares to specific targets on the evening of December 29, 2025, intending to raise no more than 6 billion yuan [1].

• Issuance Price
  : 9.52 yuan per share
• Issuance Quantity
  : 630 million shares
• Subscription Method
  : Fully subscribed by the indirect controlling shareholder China Changan Automobile Group Co., Ltd. in cash
• Use of Raised Funds
  : Two projects including new energy vehicle model and digital intelligence platform development, global R&D center construction, and core capability enhancement

From the market data perspective, the capital market’s reaction to this private placement is indeed relatively cold:

• From early December 2024 to early January 2025, the stock price fell from 13.95 yuan to 12.88 yuan,
  a drop of 7.67%
• The private placement price of 9.52 yuan per share has a large discount compared to the market price at that time [2]

• Issuance price of 9.52 yuan vs current stock price of 12.88 yuan, with a discount rate of approximately 26%
• Such a high discount is usually interpreted by the market as a concern about the company’s future development prospects

The private placement price of 9.52 yuan has a discount of over 25% compared to the market price of more than 13 yuan at that time, which is a relatively high level in the A-share market. Although fully subscribed by the controlling shareholder, such a large discount is often interpreted by small and medium investors as:

, or lacks confidence in the company’s future stock price performance.

• The fundraising scale of 6 billion yuan is relatively large, and the market is concerned about the efficiency of fund use
• Although the company stated that the funds will be used for new energy and intelligent transformation, there is uncertainty about the return cycle of specific projects
• Investors are worried whether the funds raised can truly translate into performance improvement

• The new energy vehicle market competition is becoming increasingly fierce, with price wars continuing
• Although Changan Automobile has highlights such as cooperation with Huawei in intelligentization, it faces strong competitors like BYD and Tesla
• The overall industry valuation is under pressure, affecting investor sentiment

From the financial data perspective [2]:

• P/E ratio of 17.28 times, at the mid-level of the industry
• Stock price fell by 8.56% in the past year, underperforming the market
• Net profit margin of 4.15%, profitability needs to be improved

China Changan Automobile Group fully subscribed 630 million shares, investing a total of about 6 billion yuan, demonstrating the controlling shareholder’s confidence in the company’s long-term development. This alleviates market concerns about corporate governance to some extent.

The raised funds are invested in new energy vehicle model development, digital intelligence platform construction, and global R&D center construction, which are highly aligned with the company’s “Shangri-La” new energy strategy and “Beidou Tianshu” intelligent strategy.

After the completion of the private placement, the company’s total assets and net assets scale will increase, the asset-liability ratio will decrease, and new and old shareholders will share the accumulated undistributed profits before issuance.

• The excessive gap between the private placement price and the market price may trigger a re-evaluation of the company’s valuation by the market
• Risk that the returns of the funded projects are lower than expected
• Risk of intensified competition in the new energy vehicle industry
• The overall market sentiment is weak, which may continue to suppress the stock price performance

• Controlling shareholder’s capital support shows confidence
• Strategic direction aligns with industry development trends
• Capital structure optimization reduces financial risks

Changan Automobile’s private placement plan is priced at 9.52 yuan, with a discount of approximately 26% compared to the market price, which is the main trigger for the capital market’s “cooling off”. The focus of investors’ concerns is:

. Although the use of the raised funds aligns with the strategic direction and has received full support from the controlling shareholder, the recovery of market confidence still requires time to verify the actual effects of the funded projects and the improvement of the company’s fundamentals.

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[1] Securities Times - Changan Automobile Plans to Raise 6 Billion Yuan to Boost New Energy and Intelligentization, Fully Subscribed by Controlling Shareholder (https://www.stcn.com/article/detail/3563143.html)

[2] Jinling AI Database - Company Profile and Financial Data of Changan Automobile (000625.SZ)

[3] Jinling AI Database - Recent Stock Price Performance Data of Changan Automobile (000625.SZ)