DONGFENG GROUP(HK:00489) Guotai Junan Securities·2025-04-01 07:03Investment Rating - The investment rating for Dongfeng Motor Group Co., Ltd. is maintained at "Buy" [6]. Core Views - The company achieved a turnaround in 2024, with significant improvements in both commercial and passenger vehicle segments. The gross margin for self-owned passenger vehicles has notably improved, and the joint venture business has stabilized, indicating that the strategic transformation is entering a fruitful phase [2][6]. Financial Summary - In 2024, the company reported total revenue of 106.2 billion RMB, a year-on-year increase of 5.99%. The net profit was 58 million RMB, marking a return to profitability after a loss in the previous year. The breakdown shows that commercial vehicle revenue was 47.2 billion RMB, down 4.7%, with a loss of 2.34 billion RMB, while passenger vehicle revenue was 52.3 billion RMB, up 23%, with a loss of 1.64 billion RMB, which is a reduction in loss by 49.3% compared to the previous year [5][6]. Strategic Transformation - The company is one of the three major state-owned automobile enterprises in China, accelerating the electrification transformation of its commercial and passenger vehicle businesses. The ongoing restructuring within state-owned enterprises is promising, with expectations for revenue growth to reach 157.55 billion RMB, 198 billion RMB, and 237.18 billion RMB from 2025 to 2027, alongside net profits of 2.654 billion RMB, 4.874 billion RMB, and 6.733 billion RMB respectively [6]. Market Position - The company is positioned well within the market, with a current market capitalization of 39.117 billion HKD and a share price range over the past 52 weeks between 1.88 and 5.06 HKD [6].