[ET Net News Agency, 12 June 2019] Morgan Stanley raised its target price for Beijing
Enterprises Holdings (00392) to HK$42.5 from HK$41.8 and maintained its "equal-weight"
rating.
The research house reduced its 2019-20 EPS estimates by 3.6% and 4.8%, reflecting (1)
Slight decline in gas sales volume growth with further gas sales dollar margin squeeze,
which is partially offset by the higher earnings contribution from China Gas (00384), and
(2) Lower earnings contribution from water and solid waste business.
Morgan said the price target hike was due mainly to (1) lower level of gross debt, and
(2) contribution from additional income in its corporate segment. (KL)