[ET Net News Agency, 4 December 2019] Morgan Stanley lifted its target price for
Brilliance China Automotive (01114) by 8% to HK$13 and maintained its "overweight" rating.
The research house based on BMW's 3Q quarterly report estimating around Rmb2.7bn profit
contribution from the JV to Brilliance, or net profit contribution per vehicle of Rmb20.5k
to Brilliance, up 139% YoY and 78% QoQ.
With the 3 series further ramping up in volume to 9.0k units in October, up from
4.3k/5.5k/8.7k units in July/August/September respectively, as well as the X2 localized in
October, Morgan expects strong profitability for BMW Brilliance to continue in 4Q.
It raised its 2019/20/21 net profit assumptions by 11%/9%/8%, reflecting better
profitability for the BMW JV. (KL)