A research report by CITIC Securities highlights that following Dongfeng's privatization, the valuation framework for state-owned enterprises (SOEs) in the automotive sector may undergo a significant transformation, particularly as these enterprises are commonly undervalued. Recent privatization instances underscore the growing emphasis that SOEs in the auto industry are placing on market value management. It is anticipated that this trend will lead to an uptick in capital operations, potentially easing the equity financing challenges faced by SOEs. Furthermore, despite a slightly later start, the shift towards intelligent electrification is ushering in fundamental improvements. Beyond potential capital operation targets, investors are advised to focus on two key investment avenues within SOEs in the auto industry: collaborations with technology giants like Huawei, and the business model shifts triggered by technology reverse flow from joint venture brands.