Honda Partner Dongfeng Motor Rises to Five-Month High on Earnings Outlook
Dongfeng Motor Group Co., the Chinese partner of Nissan Motor Co. and Honda Motor Co., rose to the highest in almost five months in Hong Kong trading on speculation earnings will gain in the second half.
Dongfeng has risen more than 15 percent since the company, based in the city of Wuhan in central China’s Hubei province, said after the close of markets on Aug. 27 that its first-half profit had more than doubled. China’s overall passenger-car sales grew in August at more than three times July’s pace as incentives spurred sales, the China Automotive Technology & Research Center said Sept. 1.
“When the company’s interim results came out, we knew that Dongfeng was underestimated,” said Harry Chen, an analyst at Guotai Junan Securities Co. Ltd. who rates Dongfeng’s stock “accumulate.”
“I think the previous price of around HK$12 was a little low and that it’s reasonable to set HK$14 per share target price,” he said.