BRILLIANCE CHI Rises Over 5% in Morning Session as Citi Foresees Multiple Growth Drivers for Next Year

Deep News12-09 11:50

BRILLIANCE CHI (01114) surged more than 5% during the trading session. At the time of writing, the stock was up 4.87% to HKD 4.31, with a turnover of HKD 196 million.

A recent Citi research report highlights three new growth drivers for BRILLIANCE CHI in the coming year. The firm expects increased high-margin export sales for its "Jinbei" brand, alongside an anticipated rise in domestic market share. Additionally, the adoption of industrial robotics is projected to lower production costs and enhance manufacturing efficiency, improving profitability prospects.

The report also notes that higher export sales from BRILLIANCE BMW could create further upside for earnings. Moreover, increased localization of auto parts production by BRILLIANCE BMW is expected to help stabilize margin levels.

Citi has raised its target price for BRILLIANCE CHI from HKD 3.75 to HKD 4.8, reiterating a "Buy" rating. The bank forecasts BRILLIANCE BMW's November retail sales to grow 4% month-on-month to 46,000 units, with overall inventory likely remaining healthy by year-end. For Q1 next year, the potential extension of the NEV purchase tax incentive policy may provide sales visibility for BRILLIANCE BMW.

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