Bank of China International: Upgrade Dongfeng Group's (00489.HK) rating to "Buy" and raise target price to 10.3 Hong Kong dollars.

According to the Zhitsu Finance APP, CCB International released a research report stating that based on Dongfeng Group's (00489.HK) 2025 operating income forecast of 28.8 billion RMB, corresponding to a sales forecast of 120,000 units, giving LanTu a valuation of 34.6 billion RMB, equivalent to a dividend value of 3.66 Hong Kong dollars per share. Adding a cash consideration of 6.68 Hong Kong dollars per share, the new target price is determined to be 10.3 Hong Kong dollars, representing a 73% upside potential compared to the pre-suspension stock price of 5.97 Hong Kong dollars, hence the upgrade to a "buy" rating. The bank expects a positive reaction in the stock price after resumption of trading, with the stock price fluctuations above the 6.68 Hong Kong dollars cash consideration mainly reflecting the market's expectations for LanTu's prospects.