Buy Rating on Dongfeng Motor Group: Attractive Voyah Valuation and Restructuring Progress Support Upside Despite Recent Weakness

In a report released today, Joey Xu from Morgan Stanley maintained a Buy rating on Dongfeng Motor Group Co, with a price target of HK$11.24.

Joey Xu has given his Buy rating due to a combination of factors that, in his view, make Dongfeng Motor Group attractively positioned despite recent share price weakness. He notes that regulatory milestones for the group’s restructuring plan—specifically, privatizing Dongfeng Motor Group and separately listing its EV brand Voyah—have already cleared several key approvals, with only the CSRC and HKEx sign-offs still outstanding. While the timing has slipped relative to earlier market expectations and contributed to recent underperformance versus the Hang Seng Index, he sees the overall process as progressing broadly in line with plan rather than fundamentally off track.
At the current share price, Xu believes the implied valuation assigned to Voyah is compelling, particularly given the brand’s expanding model range planned for 2026. He argues that this offers investors an opportunity to gain exposure to a growing EV franchise at a discount, embedded within a larger automotive group. In addition, he views Dongfeng as a useful portfolio diversification tool within the auto sector at a time when the industry faces elevated near‑term uncertainty, supporting a favorable risk‑reward profile. These elements together underpin his conviction that the stock still offers meaningful upside to his target price, justifying a Buy recommendation.