Changes in Hong Kong stocks | Brilliance China (01114) fell by more than 3%, Xiaomo believes the amount of the company's subsequent dividends may fall rapidly

The Zhitong Finance App learned that Brilliance China (01114) fell by more than 3%. As of press release, it fell 3.35% to HK$4.04, with a turnover of HK$41.903 million.

According to J.P. Morgan Chase's latest research report, the estimated cash balance on Brilliance China's balance sheet by the end of this year is about HK$1 to 1.5 per share. Together with this year's earnings forecast of RMB 0.64 per share and a dividend rate of 50%, the dividend for the first half of 2026 is expected to be between HK$0.35 and HK$0.9 (if special interest is included), which means the dividend ratio is about 8% to 21%.

The bank said that although Brilliance China's dividend level is attractive, the bank believes that the amount of subsequent dividends may fall rapidly because the company's cash level is not as abundant as before, and the profits of the BMW Brilliance Joint Venture may continue to face challenges in the Chinese market. The bank lowered Brilliance China's 2025 and 26 profit forecasts by 11% and 4% respectively. The target price was lowered from HK$4.7 to HK$4.1, and the rating was downgraded from “increased holdings” to “neutral”.