$DONGFENG GROUP(00489)$ Big volatility, but as the saying goes, "The bigger the waves, the more fish there are."
The restructuring announcement from Dongfeng Group and Changan Auto sparked strong market expectations for a potential merger between the two major state-owned auto enterprises. If the merger goes through, the new group will have an annual sales volume of 5.16 million units, propelling it into the global top five automakers.
The optimism around resource integration and synergy was reflected in the market, with the stock price soaring 25.7% on February 10th and another 7% increase on February 19th. Looking long-term, if the merger succeeds, it will significantly boost the scale advantages and transformation efficiency of both companies. This merger will bring a new opportunity to the automotive industry, and I’m all in for it!
Comments