Citibank: Wingda Automobile (03669.HK) establishes a long-term strategic cooperation relationship with Hungsin Electronics. Positive outlook.

Wisdom Finance App learned that Citigroup released a research report stating that Yunda Automotive (03669.HK) and Hongxin Electronics (300657.SZ) have entered into a strategic cooperation framework agreement, officially entering the field of intelligent mobility. At the same time, an affiliate of Hongxin Electronics plans to subscribe for 73.16 million new shares of Yunda Automotive at HK$0.825 per share, accounting for 3.85% of the enlarged share capital, raising a total of HK$60.36 million, intended for the initial deployment of intelligent mobility commercialization. The bank holds an overall positive view on this, believing that this may bring a second growth engine to Yunda Automotive. The bank maintains a "buy" rating on Yunda Automotive and continues to have a target price of HK$1.65.