00489 Overview

Morgan Stanley Report: Morgan Stanley released a report on VOYAH AUTO, a subsidiary of DONGFENG GROUP, highlighting its upcoming listing on the Hong Kong Stock Exchange and projecting a total revenue of RMB34.9 billion for 2025.

Stock Performance: The report noted a short selling amount of $23.62 million for VOYAH, with a short selling ratio of 13.584%, indicating market sentiment towards the stock.

DONGFENG GROUP Outlook: DONGFENG GROUP's stock price is expected to be influenced by factors such as capital flows, index inclusion eligibility, and Southbound Trading, alongside a more streamlined stock price structure.

Rating and Target Price: Morgan Stanley assigned an Overweight rating to DONGFENG GROUP, setting a target price of HKD11.24 for the stock.

Privatization Progress: Dongfeng Group and Dongfeng Motor Group have announced that all preconditions for the privatization of DONGFENG GROUP shares through a merger and the spin-off of Voyah for listing have been met, moving the transaction to the final execution stage.

Regulatory Approvals: Voyah has completed the necessary filings with the China Securities Regulatory Commission and received approval-in-principle from the Hong Kong Stock Exchange, alongside prior approvals from other regulatory bodies, confirming that all merger preconditions are satisfied.

Privatization and Spin-off Progress: Dongfeng Group has made significant progress in the privatization and spin-off of its high-end new energy vehicle brand, VOYAH, for a listing in Hong Kong.

Pre-Conditions Status: Three major pre-conditions for the merger have been established, with two already fulfilled and the third partially completed, pending final approvals from the Hong Kong Stock Exchange.

Market Performance: The HSI rose by 239 points (0.9%) to close at 26,848, with the HSCEI and HSTECH also showing gains, while total market turnover reached HKD315.192 billion.

Technology Sector Highlights: Notable gains were seen in BABA-W (+3.6%) and ALI HEALTH (+2.8%), while some AI stocks like SENSETIME-W and WEIMOB INC experienced declines of 4.9% and 4.5%, respectively.

Chip Stocks Movement: Chip stocks faced losses, with BIREN TECH and ILUVATAR COREX dropping 7.7% and 8.9%, while ASMPT and COWELL saw gains of 3.6% and 8.1%.

Automotive Sector Developments: Supported by a new tariff deal between China and the EU, BYD COMPANY and other car manufacturers like GWMOTOR and XPENG-W saw increases, while XIAOMI-W declined by 2%.

EU-China Tariff Agreement: The European Union has reached a consensus with China regarding tariffs on electric vehicles, requiring Chinese exporters to submit price commitment letters before entering the EU market.

Auto Stocks Performance: Following the tariff announcement, several Chinese carmakers, including BYD, CHERY, and GEELY, saw significant stock price increases, with BYD rising by nearly 4% and other brands also experiencing gains.

Cooperation Agreement: CATL has signed a ten-year cooperation agreement with DONGFENG GROUP's Voyah Auto, focusing on new technology, product supply, brand collaboration, and global market efforts.

Electric Mobility Focus: The partnership aims to enhance electric mobility experiences by providing safer, more efficient, and longer-range vehicles, while also promoting high-end, intelligent, and global development in the new energy vehicle industry.