[ET Net News Agency, 7 November 2019] Huatai Research raised its target price for
Brilliance China Automotive (01114) to HK$13.8 from HK$13.61 and maintained its "buy"
rating.
The research house said BMW Group released its 3Q results and disclosed equity income
from the BMW-Brilliance Automotive (BBA) JV. BMW Group's equity income from
BBA in 3Q was around EUR295mn, up 134%.
For 9-month 2019, BBA's equity income contribution to BMW Group was EUR728mn, up 28%.
Huatai estimated that BBA's net profit contribution to Brilliance China Automotive (BCA)
in 9-month was around RMB5.6bn, up 27%.
Huatai believes that BBA will maintain steady growth in sales and earnings in 2019-21,
driven by (1) rising demand for premium autos in China; (2) ramp-up in sales of the new
3-series; and (3) the introduction of new models (including the X2, iX3 and X5). (KL)