Dongfeng Motor Group Co (0489) AI Stock Analysis

• Market Cap: $37.38B
• Dividend Yield: 1.21%
• Average Volume (3M): 25.63M
• Price to Earnings (P/E): 596.1
• Beta (1Y): 0.99
• Revenue Growth: 5.05%
• EPS Growth: N/A
• Country: HK
• Employees: 109,330
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Auto - Manufacturers
• EPS (TTM): <0.01
• Shares Outstanding: 2,492,200,000
• 10 Day Avg. Volume: 34,713,533
• 30 Day Avg. Volume: 25,625,001
• PEG Ratio: 5.34
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.01
• Price Target Upside: 10.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 48 Neutral
• Price Target: HK$4.00 ▼( -11.70% Downside)

Dongfeng Motor Group Co's overall stock score reflects significant challenges in achieving operational profitability despite stable financial management and strong cash flows. Technical indicators suggest a lack of clear momentum, with potential short-term weakness. The high P/E ratio raises concerns about overvaluation, while the dividend yield offers limited compensation. The company's recovery signs are promising, but substantial risks remain, particularly in achieving sustainable profitability.

Dongfeng Motor Group Co Business Overview & Revenue Model

Company Description

Dongfeng Motor Group Co., Ltd. (0489) is a leading Chinese automobile manufacturer, primarily engaged in the production and distribution of commercial vehicles, passenger vehicles, and auto parts. The company operates through several segments, including commercial vehicles, passenger vehicles, financing services, and others. Dongfeng is known for its diverse range of products, including trucks, buses, and passenger cars, which it manufactures under its own brand as well as in partnerships with global automotive leaders.

How the Company Makes Money

Dongfeng 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
106.20B	99.31B	92.66B	113.17B	108.44B
	Gross Profit
12.81B	8.41B	7.83B	12.88B	14.86B
	EBIT
-7.53B	-9.52B	-9.60B	-4.92B	-2.02B
	EBITDA
-3.66B	-404.00M	-5.51B	-1.29B	964.00M
	Net Income Common Stockholders
58.00M	-4.00B	10.27B	11.39B	10.76B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
96.57B	105.11B	94.22B	79.39B	76.70B
	Total Assets
325.05B	330.68B	330.04B	320.07B	317.31B
	Total Debt
56.92B	61.38B	54.65B	47.35B	63.07B
	Net Debt
-18.93B	-17.92B	-13.39B	-2.92B	15.41B
	Total Liabilities
170.25B	171.07B	164.50B	167.90B	176.07B
	Stockholders Equity
149.29B	152.79B	155.85B	147.43B	135.90B
Cash Flow		Free Cash Flow
-343.00M	-4.17B	2.39B	4.28B	-2.92B
	Operating Cash Flow
17.40B	8.55B	6.56B	8.89B	1.11B
	Investing Cash Flow
-33.84B	129.00M	8.37B	5.31B	11.43B
	Financing Cash Flow
-8.90B	-1.63B	1.13B	-11.26B	7.71B

Dongfeng Motor Group Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0489, the sentiment is Positive. The current price of 4.53 is above the 20-day moving average (MA) of 4.26, above the 50-day MA of 4.32, and above the 200-day MA of 3.32, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 80.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0489.

Dongfeng Motor Group Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1211	72 Outperform	HK$1.36T	27.44	23.91%	0.74%	33.89%	45.52%
2333	70 Neutral	$187.41B	8.68	14.58%	2.69%	5.32%	10.61%
Sector *	62 Neutral	$6.88B	11.26	2.78%	3.93%	2.65%	-22.00%
1114	61 Neutral	$16.14B	4.80	8.00%	―	-3.96%	-60.66%
2238	54 Neutral	$71.53B	32.41	-0.98%	5.07%	-18.42%	-82.40%
0489	48 Neutral	$37.38B	596.05	0.04%	1.21%	5.05%	―

Dongfeng Motor Group Co Corporate Events

Dongfeng Motor Group Reports Mixed Sales Results for Early 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

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.

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

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

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

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.