HK Stock Market Move | BRILLIANCE CHI (01114) rises by nearly 5%, the company launches a long-term dividend policy with future dividends not less than 50% of the after-tax profit.

BRILLIANCE CHI (01114) has risen nearly 5% again, accumulating over 36% in the month. As of the press release, it has increased by 4.8% to 3.93 Hong Kong dollars, with a turnover of 1.44 billion Hong Kong dollars. In terms of news, BRILLIANCE CHI announced a revised dividend policy, under which, when deciding whether to recommend dividends and determining the amount of dividends, factors including the cash dividends already paid by BMW Brilliance Automotive in the relevant financial year will be considered, as well as the overall operating performance and financial performance of the group; expected operating capital needs, capital expenditure needs, and future development plans, etc. If it is decided to recommend dividends, the target is to distribute not less than 50% of the after-tax profits of the relevant financial year. Morgan Stanley's report pointed out that after multiple special dividends, BRILLIANCE CHI finally introduced a long-awaited long-term dividend policy, which is expected to have a positive impact on the stock price. Citigroup, on the other hand, anticipated that BMW Brilliance's after-tax profits for this year will be 4 billion yuan, and if it is calculated at a dividend payout rate of 50% to 75%, the constant dividends to be paid next year are expected to reach 2 to 3 billion yuan, equivalent to a dividend yield of 12% to 18%. They believe that the stock price reaction will be overwhelmingly positive.