[ET Net News Agency, 24 January 2020] Jefferies Research lowered its target price for
Dongfeng Motor Group (DFG)(00489) to HK$6 from HK$9.8 and downgraded its rating to "hold"
from "buy".
The research house said the travel restrictions imposed to control the spread of
coronavirus point to potential disruption to DFG, which is headquartered in Wuhan city.
Production/wholesale of the four plants will be affected, Honda JV to take the biggest
hit. The retail volume will be disrupted mildly but production underutilization could
weigh on 1H 2020 earnings.
Jefferies revised down its FY2020 volume and earnings forecasts by 3% and 5% to growth
of 0.2% and 0.6% versus FY2019. (KL)