Zhitong Finance has learned that Citigroup released a research report stating that it maintains a “buy” rating on Dongfeng Group (00489). Due to the profit pressure of joint ventures, it is expected that Dongfeng will experience net losses, with net losses of RMB 3.34 billion, RMB 3.16 billion, and RMB 2.23 billion respectively from 2024 to 2026, and the target price is lowered from HKD 6.03 to HKD 3.89.

The bank predicts that Dongfeng Group's sales from 2024 to 2026 will continue to decline on a quarterly basis to 1.82 million units, 1.71 million units, and 1.68 million units. Considering the consistently poor sales performance and insufficient production capacity of joint venture brands, the projected investment returns from 2024 to 2026 will remain at a low level of RMB 1.4-1.8 billion.