[ET Net News Agency, 15 July 2019] Huatai Research lowered its target price for China
Everbright International (CEI)(00257) to HK$8.8 from HK$9.3 and maintained its "buy"
rating.
The research house trimmed its estimate for CEI's net profit in 2019 by 9.5%, as a
combined result of (1) RMB depreciation against the HKD, (2) lower cost savings from
construction, mainly due to higher-than-expected cement and steel prices during 1H, and
(3) slower growth in investment on biomass projects, as a result of CEI's precise control
at the current stage.
Daiwa raised its earnings forecast for 2020 by 4.1% as stronger-than-expected project
signing in 1H has improved the visibility on the prospects for solid earnings growth in
2020 and onwards. (KL)