HK Stock Market Move | Brilliance China (01114) drops more than 17% as BMW Group lowered its core operating expectations for the 2026 fiscal year.

Huachen China (01114) fell more than 17%, as of the close, down 17.46% to 2.08 Hong Kong dollars, with a turnover of 159 million Hong Kong dollars. In terms of news, BMW Group announced a downward revision of its core operating expectations for the 2026 fiscal year, with profit and delivery targets significantly reduced in sync. In terms of performance guidance, BMW has lowered the full-year EBIT profit margin range for its automotive business from the previous 4% to 6% to 1% to 3%; the full-year vehicle delivery volume expectation has been revised from "flat with last year" to a slight decline; the group's full-year pre-tax profit forecast is expected to drop by more than 15%, previously predicted as a "moderate decline". It is reported that in the first quarter of 2026, BMW Group achieved revenue of 31.007 billion euros, a year-on-year decrease of 8.1%; pre-tax profit was 2.348 billion euros, a sharp drop of 24.6% year-on-year. Morgan Stanley previously pointed out in its research report that Huachen China's subsidiary, Huachen BMW, faced operating pressure last year far beyond expectations, leading to a 25% lower net profit forecast for Huachen China last year compared to the bank's expectations. To reflect this pressure, the bank has lowered Huachen China's net profit forecasts for 2026 and 2027 by 7% and 8% respectively, to reflect the profit margin pressure of Huachen BMW sales, which saw a 10% decrease in sales volume in the first four months of 2026.