Credit Suisse says the stake cut by Brilliance China Auto’s (Hong Kong stoack code 1114) top management potentially suggests that management believes the share price has peaked in the near term. It says the premium autos segment is set to increase capacity aggressively by more than 300% in the next 3-4 years, and should premium auto demand growth slows more than expected in response to weaker wealth effect, driven by falling property prices and a weak stock market, there could be earnings downside and valuation multiple contraction risks. Trading at 15X FY12 P/E, “Brilliance remains overvalued,” The house says and keeps the stock at Underperform with a HK$7 target. the stock rebounds 1.77 to HK$8.04 at midday Thursday.