[ET Net News Agency, 15 August 2019] Citi Research lowered its target price for China
Everbright International (CEI)(00257) to HK$8.5 from HK$9 due to Rmb depreciation and
maintained its "buy" rating.
The research house said CEI is Citi's top pick in China environmental protection sector
for (1) high net profit growth at 20% three-year CAGR in 2018-21, (2) resilient GP margins
with incremental external cost offset by internal cost-saving measures, (3) financially
sound for expansions after raising HK$10bn equity in September 2018, and (4) less tariff
subsidy cut risk of China waste-to-energy business than biomass one.
Citi lowered its 2019-21 EPS forecasts by 1-4%. (KL)