Changes in Hong Kong stocks | Brilliance China (01114) rose more than 5%, Citi expects the company to have many new growth drivers next year

The Zhitong Finance App learned that Brilliance China (01114) rose more than 5%. As of press release, it had risen 4.87% to HK$4.31, with a turnover of HK$185 million.

According to Citigroup's latest research report, Brilliance China will usher in three new growth drivers next year. It is expected that the high-profit export sales of its “Jinbei” brand will increase, and the domestic market share is expected to increase. In addition, the use of industrial robots can reduce production costs, improve manufacturing efficiency, and improve profit prospects; the increase in BMW Brilliance export sales is expected to create room for upward profit; and BMW Brilliance's increase in the degree of localization of auto parts is believed to help stabilize profit margins.

Citi raised its target price for Brilliance China from HK$3.75 to HK$4.8, reaffirming its “buy” rating. Currently, it predicts that BMW Brilliance's retail sales will increase by 4% to 46,000 units month-on-month in November this year. Overall inventory may maintain a healthy level by the end of the year. Entering the first quarter of next year, it is expected that the NEV purchase tax halving policy may provide policy visibility for BMW Brilliance's sales.