Citi reported that Dongfeng (00489.HK) forecast sequential quarterly sales to 182 million, 171 million and 168 million units between 2024 and 2026. Given the continued poor sales performance and underperformance of joint venture brands, investment returns are forecast to remain low at RMB 14-18 billion for 2024 to 2026.

The bank said that Dongfeng forecast a net loss, as profit pressures from the joint venture will put pressure on Dongfeng's short-term profit performance, with a net loss forecast of RMB 3.4 billion and RMB 31.6 billion and RMB 22.3 billion for 2024 to 2026, respectively. The target price for Dongfeng decreased from $6.03 to $3.89. Maintain “Buy/High Risk”.