The upgrade comes as Dongfeng's stock has shown remarkable momentum, with a 114% price return over the past six months, according to InvestingPro data. The analysts at Morgan Stanley highlighted that Dongfeng Motor has been trading at a significant discount to its quasi-cash position, which is over HK$10 per share. They believe that the anticipated restructuring of the parent company could serve as a pivotal event, potentially leading to better investment discipline, efficiency, and enhanced shareholder returns, especially if the new parent entity opts for more centralized capital management. InvestingPro data supports this view, showing the company trades at just 0.23 times book value and maintains more cash than debt on its balance sheet, while consistently paying dividends for 18 consecutive years. The restructuring plan's specifics and timeline remain uncertain, but Morgan Stanley sees an enhanced risk-reward profile for Dongfeng Motor.