Risk factor
Very high price volatility
Profitability factor
Excellent dividends
About
As an investment holding firm, Brilliance China Automotive Holdings Limited is primarily engaged in the production and sale of BMW automobiles, including Sport Activity Vehicles, and various automotive parts. Its operations span both the People's Republic of China and global markets. Beyond its BMW ventures, the company also markets minibuses under brand names such as JinBei, Renault, Haise, Grand Haise, and Granse. Additionally, it provides multi-purpose vehicles (MPVs) through its Huasong brand. Its extensive range of automotive components encompasses items like moldings, seating units, axles, and advanced safety features, including airbag systems. The firm also produces interior decoration products and engines designed for a variety of vehicles, such as minibuses, sedans, sport utility vehicles (SUVs), and light-duty trucks. Furthermore, Brilliance China supports its sales by extending auto-financing solutions to both end-customers and dealerships. The company benefits from significant strategic partnerships and collaborations with industry leaders such as BMW, Toyota, Magna, Bosch, Continental, Delphi, TI Automotive, and Johnson Controls. Established in 1992, the enterprise maintains its headquarters in Central, Hong Kong.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBITD.
Target Price
The average target price of 1114.HK is 2.34 and suggests 34.9% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to i