Citigroup to raise target price for Dongfeng Group

Citigroup said May 18 that the Dongfeng Group will be 00489. HK's target price rose from HK $6.35 to HK $7.5, which is equivalent to 12.7 times times the 09 forecast p/E ratio, which is 8.5 times times the average P/E ratio since the listing and has a 50% premium, which mainly reflects the improvement in the prospects for the mainland car industry.　　2009-2011 earnings forecasts rose 11%, 19% and 23% to 45.26, 49.65 and 5.112 billion yuan. The mainland's April auto sales grew 33% per cent year-on-year, the strongest month since July 07, Citi said. The bank's increase in car sales in the mainland rose from 5% per cent to a 15% rise. Dongfeng's passenger car sales rose 15% per cent in the first four months of this year, and the bank is expected to continue winning the market this year because of its 3 new model numbers.