HK Stock Market Move | Huachen China (01114) dropped nearly 6% in the afternoon, with net profit for the first half of the year halved year-on-year. Citigroup pointed out that the sales visibility of the all-new BMW iX3 is low.

Brilliance China Automotive Holdings Limited (01114) fell nearly 6% in the afternoon and was down 4.85% at HK$2.355 as of the time of writing, with a transaction volume of HK$135 million. In terms of news, Brilliance China announced its interim results, reporting revenue of RMB 676 million, a year-on-year increase of 20.3%; net profit of RMB 779 million, a year-on-year decline of 54.3%; earnings per share of 15.43 cents. The company declared an interim dividend of HK$0.5, down from HK$0.8 in the same period last year. Citigroup published a research report stating it has downgraded Brilliance China's rating to "Neutral" and lowered the target price to HK$2.55. The main reasons include: low sales visibility for the BMW Neue Klasse iX3, as final pricing combined with delayed deliveries could allow competitors to capture orders during a two-month gap; a high proportion of sales from fuel vehicles, which may put sales pressure on Brilliance BMW in the second half of this year and into next year. However, the bank also believes that the companys interim dividend is reasonable; it expects Brilliance BMW's net profit margin to remain resilient, supported by reduced costs and an increase in the proportion of exports to sustain future dividend distributions.