Group 1 - The core viewpoint of the report is that despite the better-than-expected profitability of Brilliance China in the first half of the year, the long-term sustainability of high dividend levels is in question due to declining contributions from Brilliance BMW and decreasing net cash levels [1][2] - Brilliance China's net profit for the first half of the year increased by 15.5% to 1.7 billion RMB, primarily due to a low base effect from significant tax expenditures on dividends in the previous year [1] - Brilliance BMW's profit declined by 25% to 8.2 billion RMB, but the net profit margin and profit per vehicle remained high at 9.6% and 31,000 RMB respectively, benefiting from product structure optimization [1] Group 2 - The company has resumed its regular dividend policy, with the mid-term dividend per share exceeding expectations; however, maintaining such high levels in the medium to long term may be challenging [2] - The primary cash source for the company, dividends from Brilliance BMW, has decreased by approximately 50% year-on-year due to weakening fundamentals [2] - Additional cash outflows of 1.2 billion RMB were incurred in the first half of the year due to the revival of Jinbei Shenyang and the establishment of a joint venture with TCL, which may hinder the generation of substantial cash inflows from new businesses [2]
中银国际：升华晨中国(01114)目标价至3.7港元 对较高派息水平持续性存疑