[ET Net News Agency, 4 December 2018] HSBC Global Research lowered its target price for
Brilliance China Automotive (01114) to HK$8.5 from HK$13.1 and maintained its "buy"
rating.
The research house forecast Brilliance's growth to be driven by BMW. It forecast a
recovery in sales volumes for Brilliance-Renault. It sees BMW's model cycle improving over
the coming few years due to the launch of more SUVs. The recently released X3 has been
boosting BBA's growth in 2H 2018 and the company has maintained a growth of over 20% YoY
in the face of negative industry growth.
The X2 launch next year should drive a marginal increase in growth but HSBC thinks the
X5 release - which is now confirmed as part of the terms of the deal to sell a 25% stake
of BBA to BMW - will give sales a larger boost.
HSBC revised its 2018-20 adjusted profit for Brilliance by -28%/-22%/-14% respectively.
(KL)
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01114 BRILLIANCE CHI
Nominal 
7.140 +0.220 (+3.179%) Others
04/12/2018 09:36
[I-bank focus]HSBC cuts Brilliance China (01114) to HK$8.5
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