A CITIC Securities research report indicates that Dongfeng's privatization may reshape the valuation logic of generally undervalued state-owned enterprises (SOEs) in the automotive industry. Recent privatization cases highlight the importance SOEs place on market capitalization management. This is expected to lead to more intensive capital operations and help address their equity financing challenges. Furthermore, the belated but inevitable shift toward smart electrification is also improving SOEs' fundamentals. Beyond potential targets for capital operations, we recommend focusing on two investment opportunities within SOEs in the automotive industry: 1. Collaboration with technology companies like Huawei; 2. Business model changes resulting from technology transfers to joint ventures.