Zhixin Finance APP learned that Citigroup released a research report stating that considering potential cooperation with Xiaomi Group-W (01810) and catalysts such as dividends, it has raised Dongfeng Group's (00489) target price from 3.89 Hong Kong dollars to 6 Hong Kong dollars, rating it as a "buy." The bank has raised its annual sales forecasts from this year to 2026 by 4% to 5%, to 1.88 million, 1.8 million, and 1.76 million vehicles, respectively, based on the sales trends in the first ten months of this year.

The bank stated that it has revised down the investment income forecasts of its joint ventures to 1.57 billion RMB (same below), 0.71 billion yuan, and 0.69 billion yuan; and also adjusted the loss forecasts from the original 3.34 billion yuan, 3.16 billion yuan, and 2.23 billion yuan to profits of 0.75 billion yuan, losses of 2.58 billion yuan, and losses of 2.46 billion yuan, respectively. The bank also raised its gross margin forecasts due to economies of scale and cost savings. This adjustment to the company valuation is mainly due to three factors: dividend discounting, the valuation of the advanced electric vehicle brand Lantu under Dongfeng, and potential cooperation with Xiaomi.