Mei Ri Jing Ji Xin Wen·2025-08-23 01:49Core Viewpoint - Dongfeng Group Holdings (00489.HK) announced that its subsidiary, Lantu Automobile, will go public in Hong Kong through an introduction listing, while Dongfeng Group will simultaneously complete its privatization and delisting [1][3]. Group 1: Transaction Details - The transaction will utilize a "share distribution + absorption merger" model, where Dongfeng Group will distribute its 79.67% stake in Lantu to all shareholders, followed by Lantu's listing on the Hong Kong Stock Exchange [3]. - The overall acquisition price is set at HKD 10.85 per share, comprising a cash consideration of HKD 6.68 and a share consideration of HKD 4.17 [3]. Group 2: Financial Performance - Dongfeng Group's market capitalization as of July 31, 2025, was HKD 39.12 billion, with a closing price of HKD 4.74 per share, resulting in a price-to-book (PB) ratio of 0.25 [5]. - In the first half of the year, Dongfeng Group sold approximately 824,000 vehicles, a year-on-year decrease of 14.7%, while achieving a revenue of CNY 54.533 billion, a year-on-year increase of 6.6% [5][6]. - The gross profit for the same period was CNY 7.599 billion, reflecting a 28.0% year-on-year increase, with a gross margin of 13.9%, up 2.3 percentage points [5]. Group 3: Lantu Automobile's Growth Potential - Lantu Automobile has shown strong growth potential, being one of Dongfeng's most valuable assets, with a focus on high-end smart electric vehicles [5][10]. - The company is nearing profitability, with a tax-pre loss of CNY 1.978 billion in 2023, which is expected to narrow to CNY 243 million in 2024 [9]. - Lantu aims to achieve annual sales of 200,000 vehicles, having sold approximately 56,100 vehicles in the first half of the year, which is 28% of its annual target [10]. Group 4: Strategic Implications - The listing of Lantu is expected to enhance its financing capabilities, brand image, and international expansion, potentially unlocking significant value for the company [10]. - The transaction is anticipated to shift the valuation logic for Dongfeng Group, allowing for a clearer investment value discovery for Lantu, which has been obscured under Dongfeng's broader asset portfolio [10].