According to recent reports, Morgan Stanley has issued a research note stating that GAC Group (02238) is expected to benefit from a significant recovery in its joint venture with Toyota. The firm has a positive outlook for GAC, believing that this could significantly enhance its long-term profit prospects, setting a target price of HKD 3.9 and upgrading its rating to "Overweight."

Reports suggest that GAC Group will launch a new vehicle in November in collaboration with JD Group-SW (09618) and CATL (03750). The firm believes that this new car will be a battery-swapped version of the existing Aion model, utilizing technology from CATL and marketed through JD's e-commerce platform.

While the launch may not have the overwhelming impact some investors expect, it still represents a strong marketing initiative. Morgan Stanley notes that the profitability turning point for Aion may take time, but the aforementioned news will help improve brand recognition and reach a broader customer base.