Brilliance China Automotive Holdings (1114) AI Stock Analysis

• Market Cap: HK$21.39B
• Dividend Yield: 43.37%
• Average Volume (3M): 21.66M
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.44
• Revenue Growth: 0.49%
• EPS Growth: -39.18%
• Country: HK
• Employees: 1,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 0.37
• Shares Outstanding: 5,045,269,500
• 10 Day Avg. Volume: 23,917,875
• 30 Day Avg. Volume: 21,655,478
• PEG Ratio: -0.10
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 16.47
• P/FCF Ratio: -50.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$4.45
• Price Target Upside: 5.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$4.50 ▲(7.14% Upside)

Brilliance China Automotive Holdings scores well due to its strong valuation, with a low P/E ratio and high dividend yield, indicating potential undervaluation and strong investor returns. The technical analysis supports a positive trend, with the stock trading above key moving averages. However, mixed financial performance, particularly in cash flow and operational efficiency, slightly offsets these strengths.

Positive Factors

Strong Balance Sheet

A very high equity ratio and negligible leverage provide durable financial flexibility. This strengthens resilience to industry cyclicality, supports continued joint-venture investments and capex, and reduces refinancing risk, enabling steadier long-term operations and strategic choices.

Strategic BMW Joint Venture

The JV with BMW grants access to premium technology, brand credibility and distribution in China. This structural partnership supports stable revenue streams, technology transfer, and market positioning in the high-margin luxury segment, underpinning sustainable competitive advantage.

Strong Recent Revenue Growth

High revenue growth reflects expanding demand for the company’s mix of JV-produced luxury and domestic models. Sustained top-line expansion can drive scale economies, improve fixed-cost absorption and create runway to restore operational margins if managed with disciplined cost control.

Negative Factors

Weak Operating Cash Flow

Zero operating cash flow signals weak cash conversion from core operations, limiting self-funding capacity for capex, working capital and dividends. Over months, this forces reliance on JV distributions or external financing, increasing funding risk and reducing strategic optionality.

Negative Core Profitability

Negative EBIT/EBITDA margins indicate structural operational inefficiencies or adverse product mix. Persistent negative operating profitability undermines sustainable earnings power and suggests the company must improve manufacturing efficiency or pricing to achieve durable margin recovery.

Earnings Quality and Margin Volatility

A volatile income profile—declining gross margin yet an outsized net margin—suggests earnings may be driven by one-offs or non-operating items. This inconsistency hampers predictability for investors and management planning, increasing risk to dividend and reinvestment sustainability.

Brilliance China Automotive Holdings Business Overview & Revenue Model

Company Description

Brilliance China Automotive Holdings Limited (1114) is a leading automotive company based in China, primarily engaged in the manufacturing and sales of vehicles. The company operates through several segments, including the production of luxury vehicles under the BMW brand through its joint venture, as well as the development and sale of its own branded vehicles. Brilliance also has interests in automotive components and parts manufacturing, positioning itself strategically within the growing Chinese automotive market.

How the Company Makes Money

Brilliance China Automotive Holdings generates revenue primarily through the sale of vehicles, including luxury models produced in collaboration with BMW. The revenue model is bolstered by the joint venture with BMW, where profits from vehicle sales are shared. Additionally, the company earns income from the sale of automotive parts and components, leveraging its manufacturing capabilities. Significant partnerships, particularly with international automotive brands, enhance its market position and contribute to its earnings. The growth of the Chinese automotive market, along with increasing demand for both luxury and domestic vehicles, plays a crucial role in driving the company's profitability.

Brilliance China Automotive Holdings Financial Statement Overview

Summary

The financial performance is mixed. The balance sheet is strong with a high equity ratio and low debt, scoring 75. However, the income statement shows operational challenges with negative EBIT and EBITDA margins, scoring 60. Cash flow is weak with zero operating cash flow, scoring 50. Overall, the company has financial stability but faces profitability and cash generation issues.

Income Statement

The income statement shows mixed performance. The gross profit margin has fluctuated over the years, with the 2024 figure at approximately 17.7%, indicating a decline from previous periods. Net profit margin in 2024 is strong at about 28.3%, driven by a significant net income despite a decrease in total revenue. However, EBIT and EBITDA margins are negative, suggesting operational challenges. Revenue growth has been inconsistent, with a notable decline from 2021 to 2022.

Balance Sheet

The balance sheet reveals a strong equity position, with equity ratio around 89.5% in 2024, indicating financial stability. The debt-to-equity ratio is low at 0.013, reflecting conservative leverage. Return on equity is robust at 11.9%, suggesting effective use of equity to generate profits. Overall, the company maintains a solid financial standing with minimal debt concerns.

Cash Flow

Cash flow analysis indicates potential issues. The operating cash flow is zero in 2024, signaling challenges in generating cash from operations. Free cash flow has shown volatility, with zero growth in 2024, following negative figures in previous years. The ratios of operating and free cash flow to net income suggest inefficiencies in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	858.76M	1.10B	1.12B	1.13B	2.14B	3.12B
Gross Profit	144.50M	193.88M	288.48M	235.57M	180.73M	18.59M
EBITDA	-250.49M	-141.60M	8.35B	7.24B	10.90B	-250.24M
Net Income	2.48B	3.10B	7.73B	7.15B	11.96B	11.22M
Balance Sheet
Total Assets	27.41B	29.11B	55.15B	55.43B	49.95B	47.97B
Cash, Cash Equivalents and Short-Term Investments	6.61B	10.58B	30.85B	28.46B	1.05B	2.52B
Total Debt	422.43M	732.29M	1.17B	562.26M	3.18B	7.15B
Total Liabilities	1.80B	2.01B	3.26B	3.21B	8.78B	14.62B
Stockholders Equity	24.61B	26.06B	51.12B	51.45B	42.33B	33.29B
Cash Flow
Free Cash Flow	176.44M	-356.74M	-1.02B	1.26B	1.39B	-2.82B
Operating Cash Flow	230.41M	-214.21M	-998.55M	1.30B	1.61B	-2.20B
Investing Cash Flow	1.61B	8.64B	12.03B	28.30B	1.09B	4.31B
Financing Cash Flow	-10.24B	-28.74B	-8.65B	-2.18B	-3.67B	-2.85B

Brilliance China Automotive Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1114, the sentiment is Positive. The current price of 4.2 is above the 20-day moving average (MA) of 4.11, above the 50-day MA of 3.93, and above the 200-day MA of 3.10, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 67.28 is Neutral, neither overbought nor oversold. The STOCH value of 93.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1114.

Brilliance China Automotive Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1114	72 Outperform	HK$21.39B	6.09	13.39%	43.37%	0.49%	-39.18%
0175	72 Outperform	HK$184.40B	9.61	17.60%	1.95%	―	―
2333	67 Neutral	$186.52B	10.36	13.04%	3.41%	7.93%	-12.94%
2238	64 Neutral	HK$80.05B	-11.30	-3.15%	1.35%	-8.79%	-212.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0489	57 Neutral	HK$70.48B	-121.44	-0.38%	0.62%	4.35%	86.99%
1958	55 Neutral	HK$15.07B	-20.98	-1.14%	4.98%	-6.72%	-130.82%