Brilliance China Automotive Holdings Ltd. (1114) headed for a record close in Hong Kong trading after partner Bayerische Motoren Werke AG (BMW) lifted its earnings outlook on buoyant demand from overseas markets.

Brilliance, which assembles BMW’s 3 and 5 series sedans in China, jumped 9.3 percent to HK$9.20 at the midday trading break in Hong Kong, headed for the highest close since its initial public offering in October 1999. The city’s benchmark Hang Seng Index rose 1 percent.

Munich-based BMW raised its profit and sales forecasts yesterday. It now anticipates sales of more than 1.6 million vehicles this year, up from a previous forecast of deliveries in excess of 1.5 million units. BMW’s first-half sales in China rose 61 percent to 121,614 units, compared with 3.4 percent growth for the industry.

“Luxury car sales continue to be strong, significantly outpacing other segments,” said Steve Man, a Hong Kong-based analyst with Samsung Securities (Asia) Ltd, who has a “buy” rating on Brilliance, in a July 11 report. “We expect demand to outstrip supply and pricing power to remain strong over the next two to three years.”

Shenyang, China-based Brilliance aims to triple its capacity to make BMW vehicles to 300,000 by 2013 from the end of this year by expanding an existing site and building another 560 million euros ($789 million) plant in the northeastern city.

China’s vehicle sales jumped 32 percent last year as government stimulus measures and economic growth of 10.3 percent helped the nation remain the world’s largest auto market for a second year. The nation’s luxury-car segment grew 48 percent in the same period, according to industry consultant J.D. Power and Associates.

Brilliance China has gained 55 percent this year, compared with a 5.1 percent decline in the Hang Seng Index.

Source:bloomberg