Citigroup: Yongda Auto (03669) has a positive opinion on establishing a long-term strategic partnership with Hongxin Electronics

The Zhitong Finance App learned that Citi released a research report stating that Yongda Auto (03669) and Hongxin Electronics (300657.SZ) have signed a strategic cooperation framework agreement and officially entered the field of artificial intelligence. Meanwhile, Hongxin Electronics' affiliated companies plan to subscribe for 73.16 million new shares of Yongda Motor at HK$0.825 per share, accounting for 3.85% of the expanded share capital. The total capital raised is HK$60.36 million, which is intended to be used for the initial deployment of intelligent commercialization. The bank has an overall positive view of this, believing that this may bring Yongda Motor a second growth engine. The bank maintained Yongda Motor's “buy” rating and renewed the target price of HK$1.65.