Asia gaming and consumer discretionary analyst

Michael Ting

Equity Bottom-Up

<p>Two key highlights of the company's interim results: absolute dividend remains stable despite a 64.5% yoy decline in net profit and DFM is on a path to recovery for passenger and commercial vehicle sales. The stock has underperformed its peer average by 20% YTD and has become a forgotten stock among investors but at 3x forward P/E along with improving fundamentals, we believe the stock offers a favorable risk/reward at current levels supported by a 7% dividend yield.</p>

Two key highlights of the company's interim results: absolute dividend remains stable despite a 64.5% yoy decline in net profit and DFM is on a path to recovery for passenger and commercial vehicle sales. The stock has underperformed its peer average by 20% YTD and has become a forgotten stock among investors but at 3x forward P/E along with improving fundamentals, we believe the stock offers a favorable risk/reward at current levels supported by a 7% dividend yield.

Dongfeng Motor: The Forgotten Stock with a Favorable Risk/Reward