Group 1 - The core viewpoint of the report indicates that despite the better-than-expected profitability of Brilliance China in the first half of the year, the increasing losses from Shenyang Jinbei have led to a cautious long-term outlook on maintaining high dividend 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 comparative base from significant withholding tax expenses on dividends in the same period last year [1] - The profit from Brilliance BMW 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 report notes that Brilliance China has resumed its regular dividend policy, with the interim dividend per share exceeding expectations, but maintaining such a high dividend level in the medium to long term may be challenging [2] - The primary cash source for the company, dividends from Brilliance BMW, has shown a declining trend due to weakening fundamentals, with dividends received this year down approximately 50% year-on-year [2] - Additional cash outflows of 1.2 billion RMB were incurred in the first half of the year due to the resumption of operations at 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：升华晨中国目标价至3.7港元 对较高派息水平持续性存疑