Core Viewpoint - Morgan Stanley's report indicates that Brilliance China (01114) has issued a profit warning reflecting pressure on performance, but the results are better than previously expected due to stable unit profitability [1] Group 1: Financial Performance - Brilliance China expects a pre-tax profit decrease of 34% to 36% for the six months ending in June compared to the same period in 2024, primarily due to the decline in performance of its joint venture, Brilliance BMW [1] - However, the company anticipates a year-on-year increase in post-tax profit of 10% to 13%, mainly due to a significant reduction in dividend payouts, leading to an 83% decrease in withholding tax [1] Group 2: Market Predictions - Morgan Stanley predicts that the net profit margin of the Brilliance BMW joint venture will show greater resilience, with an expected increase of 0.5 percentage points from 2025 to 2027, although the sales volume forecast has been revised down by approximately 6% during the same period [1] - The target price for Brilliance China has been raised from HKD 3 to HKD 3.4, maintaining a rating of "in line with the market" [1]
大摩：升华晨中国目标价至3.4港元 评级“与大市同步”