The Zhitong Finance App learned that Bank of America Securities released a research report stating that it reaffirmed the “neutral” rating of Dongfeng Group (00489), saying that sales of most of its passenger car brands will decline, but believes that this factor is already reflected in the current valuation, with a target price of HK$3.6.

According to the report, the company's sales volume in February was 104,000 units, down 33% year on year and 54% month on month; sales volume for the first two months of this year was 331,000 units, accounting for 16% of Bank of America's annual forecast. According to the profit warning disclosed by Dongfeng Group, net loss in 2023 was no more than 4 billion yuan (RMB. same below), while net profit of 10.3 billion yuan was recorded in 2022. The estimated net loss for the second half of 2023 was no more than 5.3 billion yuan, while net profit for the first half of the year was 1.3 billion yuan, and net profit for the second half of 2022 was 4.8 billion yuan.