Citigroup's report pointed out that after a call with Brilliance Chi (01114.HK) management, the bank believes Brilliance Chi is very likely to consider implementing a regular dividend policy. If implemented, the bank expects the company's dividend payout ratio to be as high as about 50%. Taking into account the company's strong current cash balance, the bank expects it to pay dividends of approximately 3 billion RMB in the next year, equivalent to 65 HK cents per share. It also anticipates the company’s diluted earnings per share next year to be 67.2 cents RMB, calculated at a forecasted 6 times pe, equivalent to around 4.35 HK dollars per share.

The bank believes that even after taking into account the long-term decline in BMW's profitability, Brilliance Chi's risk-return profile remains attractive, reiterating its 'buy' rating with a target price revised from 4.42 yuan to 5 yuan.