According to a report released by Morgan Stanley, after the former chairman resigned on September 11, the stock price of Huachen (01114.HK) showed significant fluctuations. The bank believes that the appointment of a new chairman will to some extent stabilize market expectations for Huachen's business, more importantly, the dividend prospects.

Morgan Stanley pointed out that although the information about the further dividend payment schedule for Huachen has not yet been clarified, considering the net cash balance of about 2.1 yuan per share, with 1.8 yuan per share possibly to be distributed to shareholders, and the recent sales recovery of BMW automobiles in China in the past few months (despite the cost of increased sales expenses), the bank believes that the risk-return of Huachen (closing price on November 4th of about 2.87 yuan) seems appealing. On the other hand, the market should closely monitor the new measures after the appointment of the new chairman.