Shares of BRILLIANCE CHI (01114) rallied more than 12% during Tuesday morning trading on the Hong Kong Stock Exchange. At the time of writing, the stock had gained 8.32%, reaching HK$2.605, with a turnover of HK$125 million.

The surge came as the company released its interim results, showing revenue of RMB 676 million, an increase of 20.3% year-on-year. However, net profit fell sharply by 54.3% to RMB 779 million, with earnings per share of RMB 0.1543. The board declared an interim dividend of HK$0.50 per share, down from HK$0.80 in the corresponding period last year.

Citi had earlier projected in a research note that BRILLIANCE CHI's first-half net profit would decline by up to 56% year-on-year, aligning with its expectations. The brokerage maintained its "Buy" rating on the company, with a target price of HK$2.70. Citi also anticipates that BRILLIANCE CHI will distribute a dividend of HK$0.80 per share in the third quarter, totaling RMB 3.5 billion, which would represent approximately 50% of the company's cash reserves.