Citi: Reiterates Brilliance China's (01114) “Buy/High Risk” Rating Target Price Raised to HK$4.8

The Zhitong Finance App learned that Citi released a research report saying that it raised the target price of Brilliance China (01114) from HK$3.75 to HK$4.8, reaffirming the “buy/high risk” rating. Currently, it is predicted that BMW Brilliance's retail sales will increase 4% month-on-month to 46,000 vehicles in November this year. Overall inventory may maintain a healthy level until the end of the year, and 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.

Brilliance China will usher in three new growth drivers next year. The bank expects high-profit export sales of its “Jinbei” brand to increase, while domestic market share is expected to increase. Coupled with the use of industrial robots, the use of industrial robots can reduce production costs, improve manufacturing efficiency, and improve profit prospects; the increase in BMW Brilliance's export sales is expected to create room for profit growth; and BMW Brilliance's increase in the degree of localization of auto parts is believed to help stabilize profit margins.