[ET Net News Agency, 6 July 2018] UBS Global Research lowered its target price for
Dongfeng Motor (00489) to HK$8.8 from HK$10.5 after reviewing each of its segments and
finding little potential for the group to further grow from its current profit level.
The research house reiterated its "neutral" rating, noting the lack of a solid growth
outlook. But with 5% dividend yield, it does not think the current share price faces
significant downside risk.
While DF Nissan could deliver double-digit volume growth in FY2018, DF PSA's
unsuccessful rebound and DF Honda's engine issues may drag on the group's performance, UBS
noted. In the longer term, UBS expects volume growth for Nissan and Honda to normalise,
while PSA could remain weak. (KL)