Damo published a report saying that the Chinese automobile market is expected to enter a renewal cycle starting next year, and automobile sales are expected to improve. Considering that the valuation of the Chinese automobile industry is at a low point, the industry rating was raised to “attractive”, and the target price of Dongfeng Group (7.87, -0.38, -4.61%) (00489) H shares was raised by 25%, from 8 yuan to 10 yuan to reflect valuation attraction.

Damo said it is expected that local governments in China will relax or cancel license restrictions starting next year, which may benefit automobile demand. The forecast for passenger car sales in mainland China next year will be revised from a 3% year-on-year decline to an increase of 1% to 2% year-on-year, making it the country with the highest growth rate in the world's major automobile markets.