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Dongfeng Motor Group Co Class H (HK:0489)
:0489

Dongfeng Motor Group Co (0489) AI Stock Analysis

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HK

Dongfeng Motor Group Co

(OTC:0489)

Rating:46Neutral
Price Target:
HK$3.50
▲(1.74%Upside)
The overall stock score is primarily influenced by financial performance and technical analysis. The company shows strong cash flow but faces challenges in profitability and valuation, with negative technical indicators further weighing on the score. The exceptionally high P/E ratio suggests the stock is overvalued, while bearish technical signals indicate potential downside risks.

Dongfeng Motor Group Co (0489) vs. iShares MSCI Hong Kong ETF (EWH)

Dongfeng Motor Group Co Business Overview & Revenue Model

Company DescriptionDongfeng Motor Group Company Limited manufactures and sells commercial vehicles, passenger vehicles, and engines and parts in the People's Republic of China. It operates in four segments: Commercial Vehicles, Passenger Vehicles, Financing Service, and Corporate and Others. It provides commercial vehicles, including trucks and buses; passenger vehicles comprising basic passenger cars, MPVs, and SUVs; electric vehicles, off-road vehicles, and special commercial vehicles; and other automobile related products. The company also provides financial services. In addition, it markets and sells automobiles. The company is based in Wuhan, the People's Republic of China. Dongfeng Motor Group Company Limited is a subsidiary of Dongfeng Motor Corporation.
How the Company Makes MoneyDongfeng Motor Group Co., Ltd. generates revenue through the sale of its vehicles and automotive products across domestic and international markets. Its key revenue streams include the manufacturing and sale of commercial vehicles like trucks and buses, passenger vehicles, and auto parts. Additionally, the company benefits from strategic joint ventures with international automotive giants such as Nissan, Honda, and PSA Peugeot Citroën, which enhance its product offerings and market reach. Dongfeng also derives income from its financing services segment, providing loans and leasing options to customers, further contributing to its overall revenue.

Dongfeng Motor Group Co Financial Statement Overview

Summary
Dongfeng Motor Group Co faces challenges in profitability, with ongoing negative operating margins despite positive revenue growth. The balance sheet is stable with manageable leverage, though return on equity needs improvement. Strong cash flows highlight effective financial management, but operational profitability remains a concern. The company shows signs of recovery, yet risks remain in achieving sustainable profitability.
Income Statement
45
Neutral
The income statement reveals challenges in profitability, evidenced by negative EBIT and EBITDA margins. The gross profit margin stands at 12.1%, slightly below industry standards, while the net profit margin has improved to 0.05% from a loss in the previous year. Revenue growth of 6.9% indicates some positive momentum, though ongoing losses at the operating level could pose risks.
Balance Sheet
55
Neutral
The balance sheet reflects a moderately stable position with an equity ratio of 45.9%, indicating a healthy equity base. The debt-to-equity ratio is 0.38, suggesting manageable leverage levels. However, ROE is low at 0.04%, highlighting inefficiencies in generating returns from equity.
Cash Flow
65
Positive
Cash flow analysis shows strong operating cash flow, with the operating cash flow to net income ratio at 300.0, indicating robust cash generation relative to net income. Free cash flow has improved significantly, demonstrating a positive growth trajectory. The free cash flow to net income ratio is also strong at 300.0, reflecting effective capital management.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
106.20B99.31B92.66B113.17B108.44B
Gross Profit
12.81B8.41B7.83B12.88B14.86B
EBIT
-7.53B-9.52B-9.60B-4.92B-2.02B
EBITDA
-3.66B-404.00M-5.51B-1.29B964.00M
Net Income Common Stockholders
58.00M-4.00B10.27B11.39B10.76B
Balance SheetCash, Cash Equivalents and Short-Term Investments
96.57B105.11B94.22B79.39B76.70B
Total Assets
325.05B330.68B330.04B320.07B317.31B
Total Debt
56.92B61.38B54.65B47.35B63.07B
Net Debt
-18.93B-17.92B-13.39B-2.92B15.41B
Total Liabilities
170.25B171.07B164.50B167.90B176.07B
Stockholders Equity
149.29B152.79B155.85B147.43B135.90B
Cash FlowFree Cash Flow
-343.00M-4.17B2.39B4.28B-2.92B
Operating Cash Flow
17.40B8.55B6.56B8.89B1.11B
Investing Cash Flow
-33.84B129.00M8.37B5.31B11.43B
Financing Cash Flow
-8.90B-1.63B1.13B-11.26B7.71B

Dongfeng Motor Group Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.44
Price Trends
50DMA
4.16
Negative
100DMA
4.07
Negative
200DMA
3.47
Negative
Market Momentum
MACD
-0.21
Positive
RSI
33.15
Neutral
STOCH
10.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0489, the sentiment is Negative. The current price of 3.44 is below the 20-day moving average (MA) of 4.03, below the 50-day MA of 4.16, and below the 200-day MA of 3.47, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 33.15 is Neutral, neither overbought nor oversold. The STOCH value of 10.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0489.

Dongfeng Motor Group Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$6.82B11.052.80%4.32%2.67%-24.92%
46
Neutral
HK$28.39B452.630.04%1.35%5.05%
$131.23B23.7023.91%3.25%
$21.50B7.3024.35%2.04%
$2.05B14.851.66%7.08%
$9.25B31.53-0.98%1.54%
$22.93B8.6914.58%2.56%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0489
Dongfeng Motor Group Co
3.44
1.17
51.41%
BYDDF
BYD Co
16.86
7.06
72.04%
GELYF
Geely Automobile Holdings
2.08
0.98
89.09%
BMCLF
BAIC Motor
0.25
-0.02
-7.41%
GNZUF
Guangzhou Automobile Group Co
0.36
0.01
2.86%
GWLLF
Great Wall Motor Co
1.59
0.13
8.90%

Dongfeng Motor Group Co Corporate Events

Dongfeng Motor Group Reports Mixed Sales Performance Amidst Strategic Shift to New Energy Vehicles
Jun 5, 2025

Dongfeng Motor Group Company Limited reported a 17.1% year-on-year decrease in total sales volume for the first five months of 2025, with 672,780 units sold. However, the company saw a significant 34.4% increase in new energy vehicle sales, totaling 160,540 units. This shift towards new energy vehicles indicates a strategic focus on sustainable automotive solutions, despite the overall decline in sales. The parent company, Dongfeng Motor Corporation, and its subsidiary, Dongfeng Automobile Company Limited, also experienced declines in sales volumes, highlighting broader challenges within the automotive market.

The most recent analyst rating on (HK:0489) stock is a Buy with a HK$6.20 price target. To see the full list of analyst forecasts on Dongfeng Motor Group Co stock, see the HK:0489 Stock Forecast page.

Dongfeng Motor Group Ensures Stability Amid Shareholder Developments
Jun 5, 2025

Dongfeng Motor Group Company Limited announced that its controlling shareholder, DFM, is not currently involved in any restructuring of relevant assets or business operations, ensuring that the company’s normal production and operational activities will remain unaffected. This announcement aims to ensure timely and fair information disclosure to safeguard investor interests, with the company committed to adhering to disclosure requirements and monitoring developments.

The most recent analyst rating on (HK:0489) stock is a Sell with a HK$3.90 price target. To see the full list of analyst forecasts on Dongfeng Motor Group Co stock, see the HK:0489 Stock Forecast page.

Dongfeng Motor Group Announces H Share Repurchase Plan
May 29, 2025

Dongfeng Motor Group Co., Ltd. has announced a Domestic Share Class Meeting scheduled for June 20, 2025, to seek approval for a special resolution granting the Board a mandate to repurchase up to 127,420,000 H shares, representing approximately 5.1% of the company’s H shares in issue. This move is part of the company’s strategic efforts to manage its capital structure effectively and potentially enhance shareholder value. The Board is authorized to manage all aspects of the repurchase, including formulating the plan, notifying creditors, and handling regulatory procedures, which could impact the company’s market positioning and shareholder interests.

The most recent analyst rating on (HK:0489) stock is a Buy with a HK$6.00 price target. To see the full list of analyst forecasts on Dongfeng Motor Group Co stock, see the HK:0489 Stock Forecast page.

Dongfeng Motor Group Proposes H Share Repurchase Mandate
May 29, 2025

Dongfeng Motor Group Co., Ltd. has announced a class meeting for its H Shareholders to discuss and potentially approve a special resolution granting the Board a mandate to repurchase up to 127,420,000 H shares, which is approximately 5.1% of the company’s H shares in issue. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting its proactive approach in responding to market conditions and operational needs.

The most recent analyst rating on (HK:0489) stock is a Buy with a HK$6.00 price target. To see the full list of analyst forecasts on Dongfeng Motor Group Co stock, see the HK:0489 Stock Forecast page.

Dongfeng Motor Group Co. Announces 2024 AGM with Key Resolutions
May 29, 2025

Dongfeng Motor Group Co. has announced its Annual General Meeting (AGM) for 2024, scheduled for June 20, 2025, in Wuhan, China. Key resolutions to be discussed include the approval of the 2024 financial reports, profit distribution, and the appointment of auditors. Additionally, a special resolution will propose granting the Board a general mandate to issue and manage shares, aiming to enhance operational flexibility and efficiency.

The most recent analyst rating on (HK:0489) stock is a Buy with a HK$6.00 price target. To see the full list of analyst forecasts on Dongfeng Motor Group Co stock, see the HK:0489 Stock Forecast page.

Dongfeng Motor Group Reports Mixed Sales Results for Early 2025
May 8, 2025

Dongfeng Motor Group reported a 20.8% year-on-year decrease in total sales volume for the first four months of 2025, with 526,722 units sold. Despite the overall decline, the company experienced a 27.7% increase in new energy vehicle sales, totaling 120,356 units. This shift highlights the company’s strategic focus on expanding its presence in the new energy vehicle market, which could potentially strengthen its industry positioning amidst declining traditional vehicle sales.

Dongfeng Motor Reports Decline in Q1 2025 Sales Amidst New Energy Vehicle Growth
Apr 7, 2025

Dongfeng Motor Group Company Limited reported a significant decline in its sales volume for the first quarter of 2025, with a 25.7% decrease year-on-year, totaling 388,003 units. This downturn reflects broader challenges faced by the company and its subsidiaries, including Dongfeng Automobile Company Limited, which also experienced a 21.0% drop in sales. Despite these declines, the company saw growth in its new energy vehicle segment, with a 12.2% increase in sales, highlighting a strategic shift towards more sustainable automotive solutions.

Leadership Changes at Dongfeng Motor Group Co., Ltd.
Mar 26, 2025

Dongfeng Motor Group Co., Ltd. announced the resignation of Mr. Zhou Zhiping from his roles as executive director, president, and authorized representative due to a change of work, effective March 26, 2025. The company expressed gratitude for Mr. Zhou’s contributions and appointed Mr. Yang Qing, the current chairman, as the new authorized representative. The company is in the process of identifying a suitable candidate to fill the vacancy of president, which may impact its leadership dynamics and strategic direction.

Dongfeng Motor Group Announces Board Composition and Governance Structure
Mar 26, 2025

Dongfeng Motor Group Co. has announced the composition of its board of directors, highlighting the roles and functions of each member. The board consists of executive, non-executive, and independent non-executive directors, with committees established for audit and risk management, remuneration, and nomination. This announcement underscores the company’s commitment to robust governance and strategic oversight, which is crucial for maintaining its competitive position in the automotive industry.

Dongfeng Motor Group Reports Improved Financial Performance in 2024
Mar 26, 2025

Dongfeng Motor Group Company Limited announced its audited consolidated results for the year ended December 31, 2024. The company reported a revenue increase to RMB 106,197 million from RMB 99,383 million in 2023, with a gross profit rise to RMB 13,585 million. Despite these gains, the company faced a loss before income tax of RMB 1,163 million, an improvement from the previous year’s loss of RMB 6,238 million. The loss for the year attributable to owners of the parent was RMB 58 million, a significant recovery compared to a loss of RMB 3,887 million in 2023.

Dongfeng Motor Group Schedules Board Meeting to Review Annual Results
Mar 14, 2025

Dongfeng Motor Group Co., Ltd. has scheduled its thirty-eighth board meeting for March 26, 2025, to review and approve the annual financial results for the year ending December 31, 2024. The board will also consider recommending a final dividend and address other business matters, reflecting the company’s ongoing commitment to financial transparency and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.