HK Stock Market Move | Brilliance China Automotive Holdings Limited (01114) surged over 12% in early trading, despite its mid-term net profit halving compared to the same period last year. It declared a mid-term dividend of HK$0.5 per share.

Brilliance China Automotive Holdings Limited (01114) surged over 12% in early trading, and as of this writing, it has risen 8.32%, trading at HKD 2.605, with a turnover of HKD 125 million. In news, Brilliance China announced its interim results, reporting a revenue of RMB 676 million, a year-on-year increase of 20.3%; a net profit of RMB 779 million, down 54.3% year-on-year; and an earnings per share of HKD 0.1543. The company declared an interim dividend of HKD 0.5, compared to HKD 0.8 in the same period last year. Citi previously released a research report stating that Brilliance China expects its net profit in the first half of the year to decline by up to 56% year-on-year, which is in line with the bank's expectations. The bank maintains a "Buy" rating for the company, with a target price of HKD 2.7. Citi expects Brilliance China to pay a dividend of HKD 0.8 per share in the third quarter, involving an amount of RMB 3.5 billion, which is approximately 50% of its cash reserves.