According to the report released by Citigroup, considering that Brilliance China (01114) exceeded the market and the bank's expected special interests per share, coupled with the rising retail discounts of BMW Brilliance, the bank raised the company's target price by 24% from HKD 8.03 to HKD 9.94 and maintained a "buy" rating.

The report stated that Brilliance China Auto decided to pay a special interest of HKD 4.3 per share, higher than the market's expected level of HKD 3.5 per share. Calculated with a group's historical P/E ratio of 5 times, the market cap of 2024 was RMB 30.7 billion, which is HKD 5.64 per share.

The bank stated that due to the continuous increase of retail discounts of BMW Brilliance, the net profit margins of BMW Brilliance for 2024-2026 were lowered by 0.5-1.6 percentage points to 9.8%/9.2%/8.9% respectively. Therefore, net profit forecasts for 2024-2026 were also revised downwards by 5% -14% to RMB 614 million/ RMB 611 million/ RMB 6.09 billion respectively.