Profit further slipped in 1H26

研报英文原文证据摘录

Not for redistribution without written consent of Morgan Stanley

M

Update

August 5, 2026 03:46 PM GMT

Brilliance China Automotive | Asia Pacific

Morgan Stanley Asia Limited+

Joey Xu, CFA

Equity Analyst

Profit further slipped in 1H26

Morgan Stanley Europe S.E., Madrid Branch+

Javier Martinez de Olcoz Cerdan

Equity Analyst

AlphaSignals Earnings Reaction

Unchanged

Modest shortfall

Modest revision lower

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Brilliance reported a YoY net profit decline of up to 56% for 1H26 YoY (on the back

Morgan Stanley Asia Limited+

Tim Hsiao

Equity Analyst

Shelley Wang, CFA

Equity Analyst

of an 18.8% wholesales decline for BMW-Brilliance in China), compared with a pre-

minority NPAT of Rmb1.7bn in 1H25, leading to an 1H26 pre-minority NPAT of

Peggy Wang

Rmb748mn+.

Research Associate

Although this tracked largely in-line with our estimate of Rmb1.6bn for FY2026 –

and slightly behind consensus of Rmb1.86bn from Refinitiv, we see looming

competition pressures from high-end/luxury products offered this year by domestic

brands, and this could still post sales risks in China for traditional luxury OEMs such

as BMW-Brilliance.

At this point, we still see no clear signs of a recovery for the broad base foreign

brands in China, and premiumization efforts by local brands could continue to weigh

on the sales of BMW-Brilliance. However, our EW rating on Brilliance also considers

brand equity for BMW in China, room for a potential longer-term sustainable niche

market share, production capacity, sales channel and export opportunities.

Brilliance China Automotive (1114.HK, 1114 HK)

China Autos & Shared Mobility | China

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 5, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

Avg daily trading value (mn)

Equal-weight

In-Line

HK$2.90

45

HK$2.00

HK$4.45-1.88

5,026

Rmb8,678

HK$109

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

EPS (Rmb)**

Revenue, net (Rmb mn)

EBITDA (Rmb mn)

ModelWare net inc

(Rmb mn)

P/E

P/BV

ROE (%)

Div yld (%)

0.40

1,182

2,324

1,986

0.34

…