Mainland booming demand of auto to benefit Brilliance China

Foreign press cited State Statistics Bureau as saying that Mainland April automobiles production grew 20% to 59700. The output of the first four quarters reached 210,000, 21% higher than the same period last year. Some types of automobiles were even out of stock, indicating Mainland auto manufacturing still in a high-growing period and auto stocks should have positive prospect in short terms. 



 



Jin Bei passenger cars factory, subsidiary of Brilliance China Automotive Holdings (1114) said in the report that sale of light-duty passenger cars in Q1 recorded a growth of 5.7%. Although the growth is less than saloon cars, Brilliance China Automotive will team up with BMW to launch M1 saloon cars, which will further enhance its growth of business. Furthermore, being included MSCI China Free index will offer support to its share price. Collecting below HK$2.4 is advised. Target price is set at HK$2.8.

Related stock : (NIL)