HK Stock Market Move | DONGFENG GROUP (00489) rises more than 10% in the afternoon. The reorganization of Dongfeng Changan is progressing continuously, and the industry looks forward to the realization of the intrinsic value after the reorganization.

DONGFENG GROUP (00489) rose more than 10% in the afternoon, with a 6.07% increase at the time of reporting, reaching 4.54 Hong Kong dollars with a turnover of 3.45 billion Hong Kong dollars. On the news front, on February 17th, Zhou Zhiping was officially appointed as director, general manager, and deputy party secretary of China Ordnance Equipment Group Limited. Against the backdrop of the deep adjustment period in the Chinese automobile industry, Zhou Zhiping's appointment is seen by the industry as an important move for the joint restructuring of Chang'an and Dongfeng. Guotai Junan pointed out that Dongfeng and Chang'an are leading state-owned enterprises in the domestic automobile industry. The restructuring of state-owned enterprises has begun, accelerating the transformation and optimization of the automotive business. Morgan Stanley previously maintained a "market-performing" rating for DONGFENG GROUP with a target price of 3.9 Hong Kong dollars. According to the bank's estimation, the current price of Dongfeng Motor is significantly lower than its net tangible asset value. Due to the lack of details on the restructuring plan, if the restructuring at the parent company level can be successfully implemented, resulting in improved operational efficiency of the listed company, its intrinsic value is expected to be reflected in the long term. The bank pointed out that as the details of the parent company's restructuring deal have not been disclosed, future stock prices are expected to be influenced by related reports, such as personnel changes.