JPMorgan views the proposed transaction as an attempt by the Chinese government and Dongfeng management to unlock the company's hidden value. The firm notes that Dongfeng has consistently traded at a significant discount to book value, currently around 0.25x price-to-book ratio. The research firm highlighted that Dongfeng's cash and equivalents, totaling Rmb87.2 billion as of the first half of 2025, are nearly twice as large as its market capitalization, indicating potential undervaluation. JPMorgan stated its previous cautious stance on Dongfeng was due to the company's inefficient capital management leading to low return on equity, particularly in recent years, but expressed encouragement about the restructuring announcement. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.