[I-bank focus]Macquarie raises Brilliance China to HK$12.1

    Macquarie raised its target price for Brilliance China Automotive (01114) to HK$12.1 from HK$11.8, and maintained its "outperform" call.
  The research house believes the market is missing several key positives for Brilliance China. BMW-Brilliance will alleviate its lack of capacity in 4Q 2013 allowing for the substitution of locally produced X1 SUVs and 3 Series sedans for imports. This will help underpin volume growth along with the expansion of the dealer network.
  Further, the cost savings from the new turbo engine for the 5 Series more than offsets higher R&D spending and, along with rising operating leverage as the Tiexi plant ramps, this should result in higher profit margins.
  Macquarie believes there are at least four years of high growth ahead before BBA moves from a high growth opportunity into a cash generator. Early indications are that pressure from the parent company is likely to result in a high payout.