Deutsche Bank Trims BRILLIANCE CHI Target to HK$3.80 Following Sharp H2 Profit Decline

Stock News03-16 16:00

Deutsche Bank has released a research report lowering its forecast for BRILLIANCE CHI's full-year 2025 net profit by 32%. This revision has led to a reduction in the target price from HK$4.00 to HK$3.80. The bank maintains a "Buy" rating on the stock.

It is anticipated that BRILLIANCE CHI will announce a dividend of HK$1.50 per share in 2026. The company has issued a profit warning, projecting that its full-year 2025 net profit will fall to over RMB 1.9 billion, representing a year-on-year decline of less than 40% and missing market expectations.

Specifically, the company forecasts that its pre-tax profit will drop to more than RMB 2.3 billion, a decrease of less than 50% compared to the previous year. Consequently, the implied net profit for the second half of 2025 is estimated to have fallen by over 80% compared to both the same period last year and the first half of the year.

BRILLIANCE CHI attributes this significant profit contraction to a sharp decline in investment income from its 25%-owned joint venture, BMW Brilliance Automotive.

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