Citi: Brilliance China (01114) rating reduced to “neutral”, and the target price was lowered to HK$2.55

The Zhitong Finance App learned that Citi released a research report saying that after a management meeting with Brilliance China (01114) yesterday (24th), Brilliance's rating was downgraded from “buy/high risk” to “neutral/high risk.” The bank considers the current risk-return on the stock to be neutral and slightly lowered the target price from HK$2.7 to HK$2.55.

Factors to consider include (1) the low sales visibility of Neue Klasse iX3, as final pricing and delayed delivery (expected November 2026) may give competitors a chance to seize orders during the two-month vacuum period; (2) fuel vehicle sales currently account for a relatively high share (over 90%), causing BMW Brilliance to face sales pressure from the second half of this year to next year; (3) A reasonable mid-term dividend of HK$0.5 per share; (4) Despite sales expectations for this year and next two years, the bank expects BMW Brilliance's net profit margin to remain resilient and fall, benefiting from reduced costs Export share The ratio is higher, and this will support future dividend payments.