Announcement • Mar 11
Dongfeng Motor Group Company Limited(SEHK:489) dropped from FTSE All-World Index (USD) Dongfeng Motor Group Company Limited(SEHK:489) dropped from FTSE All-World Index (USD) Board Change • Jan 01
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Qingsheng Zong was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Dec 31
Dongfeng Motor Group Company Limited Approves Board Changes Dongfeng Motor Group Company Limited approved the appointment of Feng Changjun as an executive director for an initial term of three years. Mr. Feng Changjun, male, born in May 1978, a member of the Communist Party of China, graduated from Central University of Finance and Economics with a bachelor's degree in accounting, holds a master's degree in accounting from Renmin University of China, a professor senior accountant. Mr. Feng started his career in July 2001, successively serving as an employee of the chief audit office and budget office of the finance and audit department, deputy director of the budget office of the finance and audit department and deputy director of the budget office of the finance department of China South Industries Group Corporation; deputy financial officer, director of the audit department, director and deputy general manager of Jinan Qingqi Motorcycle Co. Ltd.; deputy director of the finance department of China South Industries Group Corporation;deputy general manager of China South Industries Group Finance Co. Ltd.; director, general manager and secretary of the party committee of Chongqing Automobile Finance Co. Ltd.; chairman, general manager and secretary of the party committee of Chang'an Automobile Finance Co. Ltd.; director of the finance department of China South Industries Group Corporation and director of Chongqing Chang'an Automobile Co. Ltd.; chief accountant and a member of the standing committee of the party committee of Dongfeng Motor Corporation and vice president of Dongfeng Motor Group Company Limited. Mr. Feng currently serves as director, general manager and deputy secretary of the party committee of Dongfeng Motor Corporation. Mr. Feng has also been appointed as the president and as the authorised representative of the Company under Rule 3.05 of the Listing Rules (the "Authorised Representative"). Following Mr. Feng's appointment, Mr. Yang Qing ("Mr. Yang") will no longer serve as an Authorised Representative. Mr. Yang will continue to serve as an executive Director, chairman of the Board, and a member of the Board's remuneration committee and nomination committee. Reported Earnings • Sep 30
First half 2025 earnings released: EPS: CN¥0.007 (vs CN¥0.083 in 1H 2024) First half 2025 results: EPS: CN¥0.007 (down from CN¥0.083 in 1H 2024). Revenue: CN¥54.5b (up 6.6% from 1H 2024). Net income: CN¥55.0m (down 92% from 1H 2024). Profit margin: 0.1% (down from 1.3% in 1H 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Auto industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 119 percentage points per year, which is a significant difference in performance. New Risk • Aug 25
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Hong Kong stocks, typically moving 18% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 25
First half 2025 earnings released: EPS: CN¥0.007 (vs CN¥0.083 in 1H 2024) First half 2025 results: EPS: CN¥0.007 (down from CN¥0.083 in 1H 2024). Revenue: CN¥54.5b (up 6.6% from 1H 2024). Net income: CN¥55.0m (down 92% from 1H 2024). Profit margin: 0.1% (down from 1.3% in 1H 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Auto industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 112 percentage points per year, which is a significant difference in performance. Announcement • Aug 22
Dongfeng Motor Group Company Limited Announces No Interim Dividend for the Six Months Ended 30 June 2025 The Board of Dongfeng Motor Group Company Limited does not propose to distribute an interim dividend for the six months ended 30 June 2025. Announcement • Aug 12
Dongfeng Motor Group Company Limited to Report First Half, 2025 Results on Aug 22, 2025 Dongfeng Motor Group Company Limited announced that they will report first half, 2025 results on Aug 22, 2025 Announcement • Jun 30
Dongfeng Motor Group Company Limited Announces Appointment of Members of the Nomination Committee, Effective from 30 June 2025 The board of directors of Dongfeng Motor Group Company Limited announced that Ms. Liu Yanhong, a non-executive Director, and Mr. Hu Yiguang, an independent non-executive Director, have been appointed as members of the nomination committee of the Company (the Nomination Committee), with effect from 30 June 2025. Following the above appointments, the Nomination Committee comprises three independent non-executive Directors (namely Mr. Zong Qingsheng, the chairman of the Nomination Committee, Mr. Leung Wai Lap, Philip and Mr. Hu Yiguang), one executive Director (namely Mr. Yang Qing) and one non-executive Director (namely Ms. Liu Yanhong), and has one Director of a different gender, with effect from 30 June 2025. Reported Earnings • May 04
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.007 (up from CN¥0.46 loss in FY 2023). Revenue: CN¥106.2b (up 6.9% from FY 2023). Net income: CN¥58.0m (up CN¥3.95b from FY 2023). Profit margin: 0.1% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) also missed analyst estimates by 78%. Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Auto industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. Major Estimate Revision • Apr 07
Consensus EPS estimates increase from loss to CN¥0.072 profit, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from CN¥122.5b to CN¥116.5b. EPS estimate of -CN¥0.0097 up from expected loss of CN¥0.072 per share previously. Auto industry in Hong Kong expected to see average net income growth of 64% next year. Consensus price target up from HK$3.93 to HK$4.75. Share price fell 4.0% to HK$4.55 over the past week. Announcement • Mar 14
Dongfeng Motor Group Company Limited to Report Fiscal Year 2024 Results on Mar 26, 2025 Dongfeng Motor Group Company Limited announced that they will report fiscal year 2024 results at 4:00 PM, China Standard Time on Mar 26, 2025 Announcement • Jan 07
Dongfeng Motor Group Company Limited Announces Change of Address of Principal Place of Business in Hong Kong The board of directors of Dongfeng Motor Group Company Limited announced that with effect from 10 January 2025, the address of the principal place of business in Hong Kong of the Company will change to Room 1922, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong. Board Change • Dec 26
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Qingsheng Zong was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. New Risk • Dec 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Announcement • Oct 27
Dongfeng Motor Announces New Cars Made Their Debut in Slovenia Dongfeng Motor announced on the evening of October 23 the company successfully held the opening ceremony of Dongfeng Center in Ljubljana, the capital of Slovenia. At the same time, VOYAH COURAGE and FORTHING S7 new cars made their debut in Slovenia for the first time, injecting new vitality into the Slovenian automotive market. In this event, DONGFENG Motor appeared in Slovenia with the overall image of the Dongfeng brand with its three brand series products of DONGFENG, VOYAH, and MHERO, respectively displaying Dongfeng MAGE, BOX, SHINE, VOYAH FREE, and MHERO. At the meeting, Xie Qian, the leader of Dongfeng European team, introduced the Dongfeng brand, technology and products. At the same time, it was announced at the event site that Dongfeng's high-end new energy SUV Voyah Courage and the popular new energy sedan S7 were officially released in Slovenia, providing local consumers with diverse choices and high-value experiences. At present, Slovenia has relatively large government subsidies for new energy vehicles. Dongfeng new energy vehicles are highly praised in Slovenia. The two new energy models released this time combine fashionable appearance, luxurious interior, excellent performance and advanced technology, highlighting Dongfeng's new energy technology strength and the unique charm of the Dongfeng brand. At the same time, in order to meet market demand, Dongfeng also simultaneously launched various types and different segmented vehicles such as fuel and hybrid models to meet users' diverse vehicle needs. Reported Earnings • Sep 30
First half 2024 earnings released: EPS: CN¥0.083 (vs CN¥0.15 in 1H 2023) First half 2024 results: EPS: CN¥0.083 (down from CN¥0.15 in 1H 2023). Revenue: CN¥51.1b (up 12% from 1H 2023). Net income: CN¥684.0m (down 48% from 1H 2023). Profit margin: 1.3% (down from 2.9% in 1H 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Auto industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 53 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Sep 05
Upcoming dividend of CN¥0.05 per share Eligible shareholders must have bought the stock before 12 September 2024. Payment date: 25 October 2024. The company is not currently making a profit but it is cash flow positive. Trailing yield: 5.4%. Lower than top quartile of Hong Kong dividend payers (8.4%). Higher than average of industry peers (2.3%). New Risk • Sep 01
New minor risk - Dividend sustainability The dividend is not well covered by earnings. The company is paying a dividend despite being loss-making. Dividend yield: 5.2% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 31
First half 2024 earnings released: EPS: CN¥0.083 (vs CN¥0.15 in 1H 2023) First half 2024 results: EPS: CN¥0.083 (down from CN¥0.15 in 1H 2023). Revenue: CN¥51.1b (up 12% from 1H 2023). Net income: CN¥684.0m (down 46% from 1H 2023). Profit margin: 1.3% (down from 2.8% in 1H 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Auto industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 45 percentage points per year, which is a significant difference in performance. Announcement • Aug 30
Dongfeng Motor Group Company Limited Announces Interim Dividend for the Six Months Ended 30 June 2024, Payable on 25 October 2024 Dongfeng Motor Group Company Limited announced interim dividend of RMB 0.05 per share for the six months ended 30 June 2024. Ex-dividend date is 12 September 2024. Record date is 23 September 2024. Payment date is 25 October 2024. Date of shareholders' approval is 21 June 2024. Announcement • Aug 16
Dongfeng Motor Group Company Limited to Report First Half, 2024 Results on Aug 29, 2024 Dongfeng Motor Group Company Limited announced that they will report first half, 2024 results on Aug 29, 2024 Announcement • Jun 23
Dongfeng Motor Group Company Limited Approves Executive Changes Dongfeng Motor Group Company Limited approved the appointment of Zhou Zhiping as an executive director. Mr. Zhou Zhiping ("Mr. Zhou") has been approved at the AGM to act as an executive Director of the Company, with the term of office commencing on the date of approval at the AGM of the Company until the election of the directors for next session of the Board. Mr. Zhou Zhiping, born in 1971, is a senior engineer at researcher-level, and holds a doctoral degree in management science and engineering from the School of Management and Economics of Beijing Institute of Technology. Mr. Zhou started his career life in August 1992, successively served as the deputy head of the Motorcycle Division of the Development and Planning Department, the head of Long-term Planning Division of the Development and Planning Department, the deputy director of the Development and Planning Department, the inspector and deputy director of the Capital Operation Department, the director of the Capital Operation Department of China South Industries Group Corporation, the vice chairman of the board of directors and general manager of South Assets, an employee director and the director of the Capital Operation Department of China South Industries Group Corporation, a director, the secretary of the CPC Party Committee and the chairman of the Labour Union of Chognqing Changan Automobile Co. Ltd., the chairman of the board of directors, the secretary of the CPC Party Committee and the president of China Changan Automobile Group, an employee director, the general counsel and the director of the Audit and Risk Management Department of China South Industries Group Corporation, a member of the standing committee of the CPC Party Committee, a deputy general manager and the executive vice president of the Hongqi Brand Operation Committee of CHINA FAW GROUP CO., LTD. Mr. Zhou has also been appointed as the president of the Company and the authorized representative (the "Authorized Representative") under Rule 3.05 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Following the appointment of Mr. Zhou, Mr. Yang Qing ("Mr. Yang") has ceased to act as the president and authorized representative of the Company. Mr. Yang will continue to serve as an executive Director, the chairman of the Board, a member of the remuneration committee and a member of the nomination committee of the Company. Reported Earnings • May 03
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: CN¥0.47 loss per share (down from CN¥1.19 profit in FY 2022). Revenue: CN¥99.3b (up 7.2% from FY 2022). Net loss: CN¥4.00b (down 139% from profit in FY 2022). Revenue exceeded analyst estimates by 6.1%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to stay flat during the next 3 years compared to a 13% growth forecast for the Auto industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 26% per year, which means it has not declined as severely as earnings. Announcement • Mar 29
Dongfeng Motor Group Company Limited, Annual General Meeting, Jun 21, 2024 Dongfeng Motor Group Company Limited, Annual General Meeting, Jun 21, 2024. Reported Earnings • Mar 29
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: CN¥0.47 loss per share (down from CN¥1.19 profit in FY 2022). Revenue: CN¥99.3b (up 7.2% from FY 2022). Net loss: CN¥4.00b (down 139% from profit in FY 2022). Revenue exceeded analyst estimates by 6.1%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to stay flat during the next 3 years compared to a 13% growth forecast for the Auto industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to HK$3.73, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 6x in the Auto industry in Hong Kong. Total loss to shareholders of 38% over the past three years. Announcement • Mar 13
Dongfeng Motor Group Company Limited to Report Fiscal Year 2023 Results on Mar 28, 2024 Dongfeng Motor Group Company Limited announced that they will report fiscal year 2023 results on Mar 28, 2024 Major Estimate Revision • Jan 10
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from CN¥0.605 to CN¥0.529 per share. Revenue forecast steady at CN¥94.6b. Net income forecast to shrink 24% next year vs 17% growth forecast for Auto industry in Hong Kong . Consensus price target broadly unchanged at HK$3.75. Share price fell 11% to HK$3.42 over the past week. Announcement • Nov 30
Huawei's New Smart Car Firm Reportedly in Advanced Stake Talks Huawei Technologies' (HWT.UL) new smart car software and components firm is set for a valuation of up to JPY 250 billion ($34.67 billion) after it sells stakes to investors including Chongqing Changan Automobile Company Limited (SZSE:000625), three people with knowledge of the matter said. The Chinese company said on November 26 it will spin off its four-year-old Intelligent Automotive Solution (IAS) business unit - which aimed to become the equivalent of German automotive supplier Bosch of the intelligent electric vehicle (EV) era - into a new company which will receive the unit's core technologies and resources. Chongqing Changan Automobile and relevant parties will own up to 40% of the new firm, a Changan Auto statement showed on November 26. Neither Changan Auto nor Huawei disclosed financial details. Changan Auto and its ultimate parent, state-owned China Ordnance Equipment Group - also known as China South Industries Group - are considering acquiring about 35% and 5% respectively of the new firm, which could be valued at JPY 200 billion to JPY 250 billion, two of the people said. Potential minority shareholders include state-owned automakers China FAW Group Co., Ltd. and Dongfeng Motor Group Company Limited (SEHK:489), which are also in advanced talks with Huawei to acquire up to 5% each, said the three people. Huawei will likely remain the single largest shareholder with 40% to 50% for at least the next two-to-three years, said two of the people. Deal details - notably the ownership split and valuation - have not been finalised and are subject to change, the three people said. The transaction will also be subject to regulatory approval, said one of the people as well as a fourth person with knowledge of the matter. The people declined to be identified as the matter is private. Changan Auto referred Reuters to its Sunday statement and declined to comment further. Huawei confirmed it is in advanced talks to sell part of its new smart car firm to a number of investors including Chongqing Changan Automobile, but did not comment on the valuation. It added that it wanted to move technologies and resources into a new company to work with partners to promote innovation in smart car technology and promote the development of the automotive industry. It did not comment further. The other companies involved did not immediately respond to requests for comment. Huawei senior executives including Ren initially pinned high hopes on the unit to be a new growth driver, said the people. Ren did not respond to a Reuters query via the company. Announcement • Nov 03
Dongfeng Motor Group Company Limited Announces Executive Changes The board of directors of Dongfeng Motor Group Company Limited announces that Mr. Zhu Yanfeng has reached the retirement age and ceased to be an executive director and Chairman of the Board of Directors of the Company with effect from 2 November 2023. For this reason, Mr. Zhu Yanfeng also resigned as the member of Nomination Committee. Mr. Yang, born in 1966, is a senior engineer with a bachelor's degree in engineering. He is currently the executive director, chairman of the Board, member of Remuneration Committee and Nomination Committee, an authorized representative under the Rule 3.05 of the Listing Rules of HKEX. He has worked at the second steam piston bearing factory since 1988. He has served successively as the deputy section chief and deputy chief engineer of the inspection department, the director, branch secretary of the Party Committee, the duty officer of the department of the steel pipe ring of the piston bearing factory of Dongfeng Motor Corporation, the deputy general manager of Dongfeng Motor Piston Bearing Co. Ltd., the general manager of Dongfeng Auto Fasteners Co. Ltd., general manager of Dongfeng Axle Co. Ltd., executive deputy general manager of Dongfeng Dana Axle Co. Ltd., deputy general manager of Dongfeng Commercial Vehicle Co. Ltd.,general manager of Dongfeng Automobile Co.Ltd., general manager of Dongfeng Commercial Vehicle Co., director of Dongfeng Motor Co,Ltd., deputy president of Dongfeng Motor Group Co. Ltd. and general manager of Dongfeng Commercial Vehicle Co. Ltd., director of Dongfeng Motor Corporation. Mr. Yang will not receive remuneration from the Company as director. New Risk • Oct 05
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.1% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.1% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.4% net profit margin). Major Estimate Revision • Sep 04
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥95.1b to CN¥92.9b. EPS estimate also fell from CN¥0.963 per share to CN¥0.857 per share. Net income forecast to grow 22% next year vs 18% growth forecast for Auto industry in Hong Kong. Consensus price target down from HK$4.81 to HK$4.59. Share price rose 3.1% to HK$2.99 over the past week. Reported Earnings • Aug 30
First half 2023 earnings released: EPS: CN¥0.15 (vs CN¥0.64 in 1H 2022) First half 2023 results: EPS: CN¥0.15 (down from CN¥0.64 in 1H 2022). Revenue: CN¥45.7b (up 3.1% from 1H 2022). Net income: CN¥1.27b (down 77% from 1H 2022). Profit margin: 2.8% (down from 13% in 1H 2022). Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Auto industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has fallen by 19% per year, which means it is performing significantly worse than earnings. Announcement • Aug 29
Dongfeng Motor Group Company Limited Announces Executive Changes The board of directors of Dongfeng Motor Group Company Limited announced that Mr. Yin Yaoliang (Mr. Yin) resigned as (i) the joint company secretary of the Company (the Joint Company Secretary). The Board announced that Mr. Liao Xianzhi ("Mr. Liao") has been appointed as the Joint Company Secretary and an Authorized Representative of the Company in place of Mr. Yin with effect from 28 August 2023. Ms. Yuen Wing Yan, Winnie ("Ms. Yuen") will remain as the other joint company secretary of the Company. Mr. Liao, born in 1973, has been serving Dongfeng Group in the following positions since 1997: July 1997 to July 2003: Accountant of the Finance and Accounting Department of Dongfeng Motor Company's No. 1 Foundry, July 2003 to May 2015: Budgeter, Deputy Section Chief, Section Chief, and Deputy Director of the Comprehensive Budget Section of the Budget Management Department of Financial Accounting Headquarters of Dongfeng Motor Co. Ltd., May 2015 to April 2019: Deputy Director of the Finance Department of Dongfeng Honda Automobile Co. Ltd., April 2019 to August 2020: Deputy General Manager of the Financial ControlDepartment of Dongfeng Motor Corporation, August 2020 to August 2021: Deputy General Manager of the Financial Control Department of Dongfeng Motor Group Company Limited, August 2021 to present: General Manager of the Financial Control Department of Dongfeng Motor Group Company Limited, May 2023 to present: Chief Financial Officer of Dongfeng Motor Group Company Limited. Ms. Yuen is a Director of Corporate Services of Tricor Services Limited and has over 25 years of experience in the corporate secretarial field. Ms. Yuen has been providing professional corporate services to Hong Kong listed companies as well as multinational, private and offshore companies. Ms. Yuen is currently acting as the company secretary or joint company secretary of a few listed companies on the Stock Exchange. New Risk • Aug 29
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 6.4% Last year net profit margin: 9.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.4% net profit margin). Announcement • Aug 16
Dongfeng Motor Group Company Limited to Report First Half, 2023 Results on Aug 28, 2023 Dongfeng Motor Group Company Limited announced that they will report first half, 2023 results on Aug 28, 2023 Announcement • Jul 01
Dongfeng Motor Group Company Limited Announces Ordinary Final Dividend for the Year Ended 31 December 2022, Payable on 15 August 2023 Dongfeng Motor Group Company Limited announced ordinary final dividend of RMB 0.3 per share For the financial year end 31 December 2022, Ex-dividend date 23 June 2023, Record date 03 July 2023 and Payment date is 15 August 2023. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to HK$3.34, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 8x in the Auto industry in Hong Kong. Total loss to shareholders of 21% over the past three years. Announcement • May 19
Dongfeng Motor Group Company Limited Announces Resignation of Huang Wei as Non-Executive Director The board of directors of Dongfeng Motor Group Company Limited announced that Mr. Huang Wei has resigned as a non-executive Director with effect from 17 May 2023 due to work reallocation. Major Estimate Revision • Apr 06
Consensus EPS estimates fall by 21% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from CN¥1.28 to CN¥1.01 per share. Revenue forecast steady at CN¥101.5b. Net income forecast to shrink 15% next year vs 5.3% growth forecast for Auto industry in Hong Kong . Consensus price target down from HK$5.80 to HK$5.43. Share price fell 2.4% to HK$3.60 over the past week. Reported Earnings • Mar 30
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥1.19 (down from CN¥1.32 in FY 2021). Revenue: CN¥92.7b (down 18% from FY 2021). Net income: CN¥10.3b (down 9.9% from FY 2021). Profit margin: 11% (up from 10% in FY 2021). Revenue missed analyst estimates by 3.7%. Earnings per share (EPS) also missed analyst estimates by 3.1%. Revenue is forecast to grow 6.4% p.a. on average during the next 2 years, compared to a 8.5% growth forecast for the Auto industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 8% per year. Reported Earnings • Mar 30
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥1.19 (down from CN¥1.32 in FY 2021). Revenue: CN¥92.7b (down 18% from FY 2021). Net income: CN¥10.3b (down 9.9% from FY 2021). Profit margin: 11% (up from 10% in FY 2021). Revenue missed analyst estimates by 3.7%. Earnings per share (EPS) also missed analyst estimates by 3.1%. Revenue is forecast to grow 6.4% p.a. on average during the next 2 years, compared to a 8.5% growth forecast for the Auto industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 8% per year. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$3.59, the stock trades at a forward P/E ratio of 2x. Average forward P/E is 6x in the Auto industry in Hong Kong. Total loss to shareholders of 16% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$3.92 per share. Board Change • Nov 16
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. 4 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Executive Chairman of the Board Yanfeng Zhu is the most experienced director on the board, commencing their role in 2015. Independent Non-Executive Director Qingsheng Zong was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Buying Opportunity • Oct 31
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 33%. The fair value is estimated to be HK$4.55, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.7% over the last 3 years. Earnings per share has declined by 4.6%. Revenue is forecast to grow by 28% in 2 years. Earnings is forecast to grow by 44% in the next 2 years. Buying Opportunity • Oct 10
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 28%. The fair value is estimated to be HK$5.15, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.7% over the last 3 years. Earnings per share has declined by 4.6%. Revenue is forecast to grow by 37% in 2 years. Earnings is forecast to grow by 50% in the next 2 years. Reported Earnings • Oct 01
First half 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First half 2022 results: EPS: CN¥0.64 (down from CN¥1.00 in 1H 2021). Revenue: CN¥44.3b (down 37% from 1H 2021). Net income: CN¥5.53b (down 36% from 1H 2021). Profit margin: 13% (in line with 1H 2021). Revenue missed analyst estimates by 11%. Earnings per share (EPS) exceeded analyst estimates by 23%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Auto industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 17% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Sep 13
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from CN¥96.4b to CN¥102.5b. EPS estimate increased from CN¥1.18 to CN¥1.31 per share. Net income forecast to grow 42% next year vs 37% growth forecast for Auto industry in Hong Kong. Consensus price target broadly unchanged at HK$7.20. Share price was steady at HK$4.86 over the past week. Reported Earnings • Aug 31
First half 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First half 2022 results: EPS: CN¥0 (down from CN¥1.00 in 1H 2021). Revenue: CN¥44.3b (down 37% from 1H 2021). Net income: CN¥5.53b (down 36% from 1H 2021). Profit margin: 13% (in line with 1H 2021). Revenue missed analyst estimates by 11%. Earnings per share (EPS) were also behind analyst estimates. Over the next year, revenue is forecast to grow 25% compared to a 42% decline forecast for the Auto industry in Hong Kong. Major Estimate Revision • Aug 30
Consensus revenue estimates fall by 21% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥116.5b to CN¥92.1b. EPS estimate fell from CN¥1.37 to CN¥1.34 per share. Net income forecast to grow 2.0% next year vs 30% growth forecast for Auto industry in Hong Kong. Consensus price target down from HK$7.67 to HK$7.33. Share price was steady at HK$5.07 over the past week. Reported Earnings • May 02
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥1.32 (up from CN¥1.25 in FY 2020). Revenue: CN¥113.0b (up 4.2% from FY 2020). Net income: CN¥11.4b (up 5.8% from FY 2020). Profit margin: 10% (in line with FY 2020). Revenue missed analyst estimates by 3.5%. Earnings per share (EPS) also missed analyst estimates by 7.3%. Over the next year, revenue is forecast to grow 5.8%, compared to a 36% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 7% per year, which means it is performing significantly worse than earnings. Board Change • Apr 27
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 7 new directors. 4 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Executive Chairman of the Board Yanfeng Zhu is the most experienced director on the board, commencing their role in 2015. Independent Non-Executive Director Qingsheng Zong was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Major Estimate Revision • Apr 06
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥124.5b to CN¥118.8b. EPS estimate also fell from CN¥1.57 per share to CN¥1.39 per share. Net income forecast to grow 3.9% next year vs 34% growth forecast for Auto industry in Hong Kong. Consensus price target down from HK$10.00 to HK$8.70. Share price fell 2.5% to HK$5.94 over the past week. Reported Earnings • Mar 30
Full year 2021 earnings: Revenues miss analyst expectations Full year 2021 results: Revenue: CN¥113.0b (up 4.7% from FY 2020). Net income: CN¥11.4b (up 5.5% from FY 2020). Profit margin: 10% (in line with FY 2020). Revenue missed analyst estimates by 3.5%. Over the next year, revenue is forecast to grow 8.1%, compared to a 34% growth forecast for the industry in Hong Kong. Buying Opportunity • Mar 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 18%. The fair value is estimated to be CN¥7.07, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 5.7% per annum over the last 3 years. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorated over the past week After last week's 15% share price decline to HK$5.69, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 9x in the Auto industry in Hong Kong. Total loss to shareholders of 18% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$7.07 per share. Reported Earnings • Oct 01
First half 2021 earnings released: EPS CN¥1.00 (vs CN¥0.42 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: CN¥69.9b (up 38% from 1H 2020). Net income: CN¥8.63b (up 137% from 1H 2020). Profit margin: 12% (up from 7.2% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 5% per year. Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment improved over the past week After last week's 15% share price gain to HK$8.22, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 18x in the Auto industry in Hong Kong. Total returns to shareholders of 19% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$13.22 per share. Upcoming Dividend • Sep 10
Inaugural dividend of CN¥0.40 per share Eligible shareholders must have bought the stock before 17 September 2021. Payment date: 25 October 2021. The company last paid an ordinary dividend in July 2020. The average dividend yield among industry peers is 1.1%. Reported Earnings • Aug 29
First half 2021 earnings released: EPS CN¥1.00 (vs CN¥0.35 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: CN¥69.9b (up 38% from 1H 2020). Net income: CN¥8.63b (up 186% from 1H 2020). Profit margin: 12% (up from 6.0% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 3% per year. Valuation Update With 7 Day Price Move • Aug 27
Investor sentiment improved over the past week After last week's 16% share price gain to HK$8.12, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 16x in the Auto industry in Hong Kong. Total returns to shareholders of 7.9% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$13.22 per share. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥7.21, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 16x in the Auto industry in Hong Kong. Total returns to shareholders of 9.4% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$13.23 per share.