Author | Guanchejun

JAC Motors has recently been on a roll—not with its car prices, but with its stock performance.

On September 28th, the A-share market witnessed a classic scenario where the 'index took a nosedive, and individual stocks tumbled.' The Shenzhen Component Index dropped by over 3%, while the ChiNext and STAR Board Composite Indices plummeted more than 4%. Across the market, over 4,600 stocks turned red (indicating a decline), with trading volume reaching a mere 1.72 trillion yuan.

Yet, amidst this sea of red, there were notable exceptions—like JAC Motors. It opened strong, surged swiftly, hit the upper limit, briefly broke through it during the session, and then firmly resealed it, achieving three upper limit hits in four days.

My initial reaction: Isn't this the same old JAC that manufactures light trucks, sells Refine models, and used to contract manufacture for NIO?

As an automaker that reported a loss of 749 million yuan in the first half of the year, why is it performing so robustly in a weak market? The underlying logic is far more intricate than mere surface-level stock price movements.

01

Let's delve into the news first.

There have been at least two recent pieces of news concerning JAC Motors: Firstly, the Hongmeng Intelligent Mobility launch event took place, with the Zhijie RX and Zhijie R7 officially making their debut. Cumulative deliveries across the Hongmeng Intelligent Mobility lineup have surpassed 1.55 million units. As the premier partner within the Hongmeng Intelligent Mobility ecosystem, JAC Motors' Zunjie brand naturally became the center of attention.

Secondly, market rumors have surfaced about a potential tripartite cooperation between Stellantis, Huawei, and JAC. No official announcement has been made yet, so I won't delve deeper. However, as you're aware, the stock market is easily swayed by such rumors.

Looking beneath the surface, JAC Motors' cooperation with Huawei appears to be undergoing a significant transformation in 2026. In April, they signed a 'Joint Innovation Cooperation Agreement'; in May, they established the Intelligent Electric Joint Innovation Center.

More critically, JAC plans to invest in Yinwang Intelligent Technology Co., Ltd. If the transaction is finalized, Yinwang will become a subsidiary of JAC, deepening their relationship from partners to a community with shared interests.

In August this year, the first batch of Zunjie MPV models—the V800 and V680—were launched, with deliveries commencing in September. Yu Chengdong revealed that a new Zunjie SUV is expected to launch in early 2027, and he personally participated in pre-mass-production reviews at JAC's factory. This indicates that Zunjie will soon have a complete lineup in the luxury category: sedans + MPVs + SUVs.

02

However, behind the stock price exuberance, JAC Motors' fundamentals are not rosy. In the latest financial report, I observed that in the first half of 2026, JAC's revenue was approximately 22.13 billion yuan, up 14.31% year-on-year, but net profit attributable to shareholders was a loss of 749 million yuan.

In August, sales were 26,986 units, down 16.83% year-on-year; cumulative sales from January to August were 228,000 units, down 8.17% year-on-year. Traditional mainstay SUVs and sedans witnessed significant declines. The company also highlighted operational performance risks in its abnormal fluctuation announcement.

So, why is the market valuing it this way? The answer lies in expectations. From publicly available information, I gather that the average institutional forecast for JAC's 2026 full-year net profit is around 2.226 billion yuan, with a high estimate of 3.798 billion yuan.

Over the past six months, 13 institutions have issued research reports, with 8 giving a 'Buy' rating and an average target price of about 69.25 yuan.

Currently, JAC's valuation logic can no longer be confined to the traditional automaker framework; the market increasingly prices it as a core player in the Huawei ecosystem + an ultra-luxury brand operator.

03

Against this backdrop, combined with the current capital rotation patterns in the A-share market, this rally has been fueled.

Recently, the A-share market has been generally weak and volatile, with tech, consumer, and new energy sub-sectors undergoing rotational adjustments. The market lacks sustained mainstream hotspots, capital risk appetite has continuously declined, and demand for safe havens has surged.

Compared to high-volatility thematic sectors, the automotive sector stands out. It has been declining throughout the year and is currently at historically low valuations.

Coupled with ongoing policy support for the industry, stable performance from leading companies, and rich thematic attributes, it represents an extremely cost-effective safe-haven sector in weak market conditions.

Thus, capital has been continuously exiting high-position thematic plays and positioning low in the automotive sector. At this juncture, JAC Motors happened to release a wave of positive news, naturally becoming the primary target of major capital flows. This led to concentrated buying and a rally, also driving a collective recovery across the entire automotive sector.

That said, in capital markets, the most precious commodity is never the present, but the future. However, when the future is overpriced, those who enter last often bear the brunt.

Whether the Zunjie SUV can launch on schedule and gain traction, whether the Stellantis cooperation receives official endorsement, and when JAC Motors can stem its financial losses—these are the key variables determining JAC's long-term value.

In summary, JAC Motors still has a long journey ahead to transition from storytelling to tangible performance.

Unless otherwise stated, all charts in this article are sourced from public disclosures through various channels. We hereby acknowledge and express our gratitude! The views expressed herein are for reference only and do not constitute investment advice.

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