Jinwu Financial News | According to J.P. Morgan Chase Research Report, Brilliance China (01114) announced another special dividend of HK$1.5 per share and said it will consider further dividends in 2024. Based on the closing price of April 15, the yield is 20%. The total dividend for 2024 is expected to be higher than Motong's original forecast of HK$2 per share. The bank expects Brilliance China to continue to pay dividends after selling 25% of BMW Brilliance's shares in 2018, and the company will also receive a cash dividend of RMB 11.2 billion from BMW Brilliance in the fourth quarter of 2023. As a result, the cash on Brilliance's balance sheet was about 20% higher than the market value at the end of March.
According to the bank, Brilliance still holds 25% of the shares from BMW Brilliance. Motong expects Brilliance China to make a profit of 60-7 billion yuan from BMW Brilliance every year. The board of directors has yet to reach a specific agreement on BMW Brilliance's future recurring profits. The bank raised the company's target price from HK$8 by 37.5% to HK$11, giving it an “increase” rating.