CITIC Securities: After Dongfeng's privatization, the valuation logic of the undervalued state-owned enterprises in the automobile industry may undergo a reconstruction.

Citic Securities research report indicates that, after Dongfeng's privatization, the valuation logic of undervalued state-owned enterprises in the automotive industry may undergo restructuring. Recent privatization cases highlight the importance of market value management by state-owned enterprises in the automotive industry, and it is expected that there will be more intensive capital operations for state-owned enterprises in the future, which will help address the dilemma of state-owned enterprises in equity financing. At the same time, the delayed but not absent transformation towards intelligent electrification of state-owned enterprises is also bringing about improvements in their fundamentals. In addition to potential targets for capital operations, it is recommended to focus on investment opportunities in the state-owned enterprises in the automotive industry from two perspectives: 1. Cooperation with technology companies such as Huawei; 2. Business model changes brought about by the reverse technology output of joint venture brands.