[ET Net News Agency, 3 July 2020] Citi Research upped its target price for Brilliance
China Automotive (01114) to HK$9.9 from HK$9.7 and maintained its "buy" rating.
The research house rolled forward its valuation to 2021 to better reflect the recovery
momentum in 2H to 2021.
Citi expects persistent strength in China's property market to raise property prices and
thereby wealth of the country's higher-income population. This should support luxury car
purchases, despite the overall economic weakness.
Given BBA's (a JV between the BMW Group and Brilliance China) younger product age and
competitive product portfolio, Citi expects the JV to be a key beneficiary of the luxury
sector resilience. (KL)