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

Dongfeng Motor Group Co (0489) AI Stock Analysis

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HK:0489

Dongfeng Motor Group Co

(0489)

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Neutral 57 (OpenAI - 4o)
Rating:57Neutral
Price Target:
HK$9.50
▲(7.47% Upside)
The overall stock score of 57 reflects a mixed outlook for Dongfeng Motor Group Co. The company's strong cash flow and stable balance sheet are positive factors, but ongoing profitability challenges and a negative P/E ratio weigh heavily on the valuation. Technical analysis indicates positive momentum, which provides some optimism for future performance.
Positive Factors
Strong Cash Flow
Robust cash flow generation indicates effective financial management, providing the company with the flexibility to invest in growth opportunities and manage debt efficiently.
Revenue Growth
Consistent revenue growth suggests expanding market reach and product adoption, which can lead to improved market position and long-term business sustainability.
Stable Balance Sheet
A stable balance sheet with manageable leverage levels provides a strong foundation for future growth and resilience against economic fluctuations.
Negative Factors
Profitability Challenges
Persistent profitability issues can hinder reinvestment in the business and affect long-term growth prospects, posing a risk to financial stability.
Low Return on Equity
Low ROE indicates that the company is not effectively utilizing its equity base to generate profits, which could impact investor confidence and long-term value creation.
Negative EBIT and EBITDA Margins
Negative EBIT and EBITDA margins reflect operational inefficiencies, which can limit the company's ability to invest in growth and compete effectively in the market.

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

Dongfeng Motor Group Co Business Overview & Revenue Model

Company DescriptionDongfeng Motor Group Co., Ltd. is one of the largest automotive manufacturers in China, primarily engaged in the design, development, manufacturing, and sale of vehicles. The company operates across various sectors, including passenger vehicles, commercial vehicles, and automotive components. Dongfeng's core products include a diverse range of automobiles, trucks, buses, and electric vehicles, and it is known for its collaborations with international automotive brands, enhancing its product offerings and market reach.
How the Company Makes MoneyDongfeng Motor Group generates revenue through multiple channels, primarily from the sale of vehicles, including passenger cars and commercial vehicles. The company has a significant presence in both domestic and international markets, allowing it to capitalize on a wide customer base. Key revenue streams include direct sales of vehicles, after-sales services, and parts. Additionally, Dongfeng benefits from strategic partnerships with global automakers, enabling joint ventures that expand its product lineup and distribution networks. The increasing demand for electric vehicles (EVs) also presents a growing revenue opportunity as Dongfeng invests in EV technology and infrastructure, aligning with market trends towards sustainability.

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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue109.58B106.20B99.31B92.66B113.17B108.44B
Gross Profit14.44B12.81B8.41B7.83B12.88B14.86B
EBITDA-1.98B-3.66B-404.00M-5.51B-1.29B964.00M
Net Income-571.00M58.00M-4.00B10.27B11.39B10.76B
Balance Sheet
Total Assets317.79B325.05B330.68B330.04B320.07B317.31B
Cash, Cash Equivalents and Short-Term Investments87.24B96.57B105.11B94.22B79.39B76.70B
Total Debt56.84B56.92B61.38B54.65B47.35B63.07B
Total Liabilities163.85B170.25B171.07B164.50B167.90B176.07B
Stockholders Equity148.49B149.29B152.79B155.85B147.43B135.90B
Cash Flow
Free Cash Flow8.87B-343.00M-4.17B2.39B4.28B-2.92B
Operating Cash Flow8.45B17.40B8.55B6.56B8.89B1.11B
Investing Cash Flow-9.20B-33.84B129.00M8.37B5.31B11.43B
Financing Cash Flow-4.52B-8.90B-1.63B1.13B-11.26B7.71B

Dongfeng Motor Group Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price8.84
Price Trends
50DMA
9.31
Negative
100DMA
8.36
Positive
200DMA
6.24
Positive
Market Momentum
MACD
-0.10
Positive
RSI
37.63
Neutral
STOCH
15.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0489, the sentiment is Neutral. The current price of 8.84 is below the 20-day moving average (MA) of 9.11, below the 50-day MA of 9.31, and above the 200-day MA of 6.24, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 37.63 is Neutral, neither overbought nor oversold. The STOCH value of 15.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0489.

Dongfeng Motor Group Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$190.34B10.8213.04%3.32%7.93%-12.94%
72
Outperform
HK$179.83B9.9417.60%1.92%
66
Neutral
HK$927.75B21.2119.95%1.51%22.94%10.22%
64
Neutral
HK$78.91B-11.16-3.15%1.41%-8.79%-212.16%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
57
Neutral
HK$72.95B-117.71-0.38%0.62%4.35%86.99%
55
Neutral
HK$16.27B-22.42-1.14%4.95%-6.72%-130.82%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0489
Dongfeng Motor Group Co
8.84
4.73
115.09%
HK:1211
BYD Co
96.00
8.11
9.22%
HK:0175
Geely Automobile Holdings
17.21
2.43
16.47%
HK:1958
BAIC Motor
2.02
-0.32
-13.68%
HK:2238
Guangzhou Automobile Group Co
3.86
0.30
8.37%
HK:2333
Great Wall Motor Co
14.84
1.33
9.83%

Dongfeng Motor Group Co Corporate Events

Dongfeng Motor Group Announces Privatization and Strategic Changes
Nov 28, 2025

Dongfeng Motor Group Co., Ltd. has announced a proposed pre-conditional privatization by Dongfeng Motor Group (Wuhan) Investment Company Limited through a merger by absorption. The company also plans to distribute VOYAH shares and withdraw its listing. While progress has been made in fulfilling the merger pre-conditions, certain regulatory approvals are still pending, which could impact the timeline and execution of these strategic transactions.

Dongfeng Motor Group Establishes New Joint Venture to Drive Intelligent Off-Road Technology
Nov 18, 2025

Dongfeng Motor Group Co., Ltd. has announced the official registration and establishment of a new joint venture, M-Hero Technology (Xiangyang) Co., Ltd., which aims to leverage the company’s technological strengths to drive breakthroughs in intelligent technology within the off-road sector. This joint venture is expected to enhance the company’s product offerings and improve outdoor travel experiences for its users. Additionally, the company provided further details on the valuation of its proprietary technology licenses, indicating a strategic focus on maintaining competitive advantage through technological innovation despite anticipated declines in value due to industry competition and technological advancements.

Dongfeng Motor Group Reports Mixed Sales Performance with Strong New Energy Growth
Nov 6, 2025

Dongfeng Motor Group reported a slight decrease in total sales volume for the first ten months of 2025, with a 1.6% year-on-year decline, totaling 1,501,025 units. Despite this, the company saw a substantial increase in new energy vehicle sales, which rose by 37.1% year-on-year, highlighting a strategic shift towards more sustainable vehicle options. The parent company, Dongfeng Motor Corporation, also experienced a decline in sales, while the subsidiary Dongfeng Automobile Company Limited saw a more significant drop of 21.4% in sales volume. These figures indicate a challenging market environment but also reflect the company’s growing focus on new energy vehicles, which could enhance its competitive positioning in the evolving automotive industry.

Dongfeng Motor Group Announces Privatization and VOYAH Shares Distribution
Oct 31, 2025

Dongfeng Motor Group Co has announced a proposed pre-conditional privatization by way of a merger by absorption, along with the distribution of VOYAH shares and the withdrawal of its listing. The company is working on fulfilling the necessary pre-conditions for these transactions, with some approvals already obtained, while others are still pending. This move is expected to impact the company’s market positioning and stakeholder interests significantly.

Dongfeng Motor Group Issues Unaudited Quarterly Report Amid Privatization Efforts
Oct 31, 2025

Dongfeng Motor Group has issued an unaudited quarterly report for the nine months ending September 30, 2025, as required by Chinese regulations for its debt instruments in the China Interbank Bond Market. The report, prepared under PRC GAAP, has not been audited and includes a profit forecast that must be reconciled with IFRS standards to comply with the Takeovers Code. The company faces timing challenges in meeting these reporting requirements due to the need for reconciliation and compliance with the Takeovers Code amid its ongoing privatization efforts.

Dongfeng Motor Group Sells 50% Stake in Dongfeng Honda Engine
Oct 30, 2025

Dongfeng Motor Group Co. announced the sale of its 50% equity interest in Dongfeng Honda Engine to GHAC for approximately RMB1,172 million. This transaction, conducted through a public listing and tender process, is considered a connected transaction under the Listing Rules, impacting the company’s equity structure but exempt from requiring shareholders’ approval.

Dongfeng Motor Group Reports Mixed Sales Results for 2025
Oct 9, 2025

Dongfeng Motor Group Company Limited reported a 3.6% year-on-year decrease in total sales volume for the first nine months of 2025, with 1,316,768 units sold. However, sales of new energy vehicles increased by 35.6% year-on-year, reaching 361,931 units. The parent company, Dongfeng Motor Corporation, saw a 5.4% decline in total vehicle sales, while the subsidiary Dongfeng Automobile Company Limited experienced a 20.3% decrease. Despite the overall decline, the growth in new energy vehicle sales highlights a positive shift towards sustainable automotive solutions.

Dongfeng Motor Group Announces Privatization and VOYAH H Shares Listing
Oct 2, 2025

Dongfeng Motor Group Co has announced a proposed pre-conditional privatization through a merger by absorption, alongside a proposed distribution of VOYAH shares. Additionally, the company plans to withdraw its listing and introduce VOYAH H shares to the Main Board of the Hong Kong Stock Exchange. This strategic move aims to streamline operations and potentially enhance market positioning by focusing on the VOYAH brand, which could have significant implications for stakeholders and investors.

Dongfeng Motor Group Announces Privatization and VOYAH Share Distribution
Sep 26, 2025

Dongfeng Motor Group Co has announced a proposed pre-conditional privatization by Dongfeng Motor Group (Wuhan) Investment Company Limited through a merger by absorption. This includes the distribution of VOYAH shares and the proposed withdrawal of the company’s listing. The announcement also details an extension for the dispatch of the Composite Document, which outlines the merger and distribution process. The extension is necessary to fulfill pre-conditions and finalize necessary documentation. Stakeholders are advised that the merger’s effectiveness is contingent upon satisfying certain conditions, and further updates will be provided as the process progresses.

Dongfeng Motor Group Announces Privatization and VOYAH Share Distribution
Sep 19, 2025

Dongfeng Motor Group Co has announced the proposed pre-conditional privatization of the company by Dongfeng Motor Group (Wuhan) Investment Company Limited through a merger by absorption. The announcement also includes the proposed distribution of VOYAH shares and the withdrawal of the company’s listing. The company has successfully obtained the requisite approval from VOYAH shareholders, fulfilling one of the key pre-conditions for the merger. However, other regulatory approvals are still pending, and the company is actively working towards completing the necessary filings and registrations.

Dongfeng Motor Group Announces Privatization and VOYAH Shares Distribution
Sep 18, 2025

Dongfeng Motor Group Company Limited has announced a proposed pre-conditional privatization by Dongfeng Motor Group (Wuhan) Investment Company Limited through a merger by absorption. Additionally, the company plans to distribute VOYAH shares and withdraw its listing. Altus Capital Limited has been appointed as the Independent Financial Adviser to guide the Independent Board Committee on these matters. The effectiveness of the merger and distribution is contingent upon satisfying various conditions, including approvals from relevant authorities.

Dongfeng Motor Group Forms Joint Venture to Strengthen Market Position
Sep 17, 2025

Dongfeng Motor Group Co., Ltd. announced the formation of a joint venture with DFL, Xiangyang Holding, and Xianggao Investment, with a total registered capital of RMB8.47 billion. Dongfeng and DFL will contribute RMB3.55 billion and RMB920 million, respectively, while Xiangyang Holding and Xianggao Investment will contribute RMB2.88 billion and RMB1.12 billion. This strategic move is expected to enhance Dongfeng’s market position and operational capabilities in the automotive sector.

Dongfeng Motor Group Reports Mixed Sales Performance for 2025
Sep 8, 2025

Dongfeng Motor Group reported a 5% year-on-year decline in total sales volume for the first eight months of 2025, with 1,138,573 units sold. Despite the overall decrease, the company saw a substantial 38.2% increase in new energy vehicle sales, totaling 304,770 units. The parent company, Dongfeng Motor Corporation, also experienced a 7% decline in sales, while the subsidiary Dongfeng Automobile Company Limited reported a 17.4% drop. The announcement highlights the company’s strategic focus on new energy vehicles, which could strengthen its position in the evolving automotive market.

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.Date of analysis: Oct 23, 2025