Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

A buy-side analyst with over 15 years of experience investing in Asian markets and specializing in the mid-small cap space, emphasizing value investing in companies with good free cash flows/dividends and long-term holding horizons. 
Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd. It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity, Bottom-up Analyst

Kelusa Asia Focus Funds

Equity Bottom-Up

Brilliance China Automotive / Equity Bottom-Up

BMW reported a 27% YoY growth in its Associate Income.  The market is excited and is calling this the beginning of a structural uptrend in earnings for <a href="https://www.smartkarma.com/entities/469" target="_blank" data-smartkarma-citation="entities:469:1">Brilliance China Automotive (1114 HK)</a> .  I would caution investors not to read into this positively for three reasons :a) Suppression of rebates to dealerships. Take a look at the results of new car gross margins of Zhengtong, Baoxin, Yongda and Meidong  (dealerships exposed to BMW). b) Brilliance smoothing H1 and H2 results so that the kitchen sinking is not all back-end loaded.

BMW reported a 27% YoY growth in its Associate Income.  The market is excited and is calling this the beginning of a structural uptrend in earnings for Brilliance China Automotive (1114 HK) .  I would caution investors not to read into this positively for three reasons :a) Suppression of rebates to dealerships. Take a look at the results of new car gross margins of Zhengtong, Baoxin, Yongda and Meidong  (dealerships exposed to BMW). b) Brilliance smoothing H1 and H2 results so that the kitchen sinking is not all back-end loaded. 

Brilliance Q3 2016: Don't Get Too Excited About the Implied JV Earnings of BMW