Dongfeng Motor Group Co Ltd Business Details
Autor: purple77126 • November 6, 2015 • Term Paper • 2,569 Words (11 Pages) • 760 Views
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Recommendation | BUY | |
Target Price (HKD) | 15.10 | |
Current Price (HKD) | 11.10 | |
52WK High (HKD) | 14.48 | |
52WK Low (HKD) | 7.02 | |
Market Cap (B HKD) | 95.64 | |
P/E Ratio | 6.99 |
Business Description
Dongfeng Motor Group (DFG) is one of the leading
manufacturers in Chinese vehicle industry. DFG currently invests in 23 subsidiaries and joint-venture entities, and its core business fully covers commercial vehicles, passenger vehicles incorporating basic types, MPV, SUVs, and auto parts such as engines.
Commercial Vehicles The commercial vehicle (CV) segment incorporates a full range of product portfolios of Trucks, buses, special and military vehicles. As of 2015, DFG produces 42 kinds of basic series of commercial vehicles, including 35 truck series and 7 bus series. Facing the dramatic shrink of CV market, DFG still outperforms peers and attains 10.4% market share in 2014.
Passenger Vehicles Passenger vehicles (PVs) including basic
Units Produced/Sold and Market Share in 2014 passenger cars, MPVs, SUVs, are mostly manufactured by JVs of DFG. Currently 51 passenger car model series, including 31 Sedans, 7 MPVs and 13 SUVs, are under production. Passenger vehicles segment serves as a dominating profit generator with contribution amounting to 45.3% at year-end 2014, 11.9% of overall market share.[pic 2]
Company Strategy
DFG currently maintains its domestic market share and exploits overseas markets via cooperation with JVs and associates, and shifts to passenger vehicles as new driving force. It also begins to put strategic emphasis on new energy and clean production technologies.
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