Citigroup lowers the target price for Brilliance China to 3.9 yuan

Citi published a research report indicating that Brilliance China (01114.HK) issued a profit warning for the full year of 2025, expecting that the pre-tax profit will decline by no more than 50% year-on-year, while the post-tax profit will decline by no more than 40% year-on-year, despite a tax reduction of no less than 69%. The main reason for the profit decline is the poor performance of Brilliance BMW and the operational losses recorded by Jinbei after resuming production in the second half of 2025.

After revising the profit forecast, the bank lowered the target price for Brilliance China from HKD 4.8 to HKD 3.9, while maintaining the classification and total valuation method unchanged. The "Buy" rating is maintained, with a forecast dividend yield of 16.3% for 2026