[ET Net News Agency, 3 August 2020] Morgan Stanley lifted its target price for
Brilliance China Automotive (01114) to HK$12 from HK$10 and maintained its "overweight"
rating.
The research house said Brilliance-BMW's sales grew 18.1%, 26.5% and 49.1% in April, May
and June, respectively. Its 1H sales grew 2.1%, rebounding strongly from a 31% decline in
1Q.
Morgan expects Brilliance-BMW will continue outperforming the market throughout 2H and
2021, given the continually increasing demand for consumption upgrades in China. To
reflect Brilliance-BMW's better-than-expected sales, Morgan raises the profit estimation
from the BMW JV by 7%, 11% and 16% in 2020-2022, respectively. (KL)