[ET Net News Agency, 2 September 2019] HSBC Global Research lowered its target price
for Kerry Logistics Network (KLN)(00636) to HK$13 from HK$14.2 and maintained its "hold"
rating.
The research house estimated KLN's 1H recurring profits were HK$556m, down 4%. In its
results announcement, KLN expected the current geopolitical situation in its key market to
impact the group's performance adversely in 2H.
HSBC noted that with the recent escalation in US-China trade tensions, the trade outlook
has become more challenging in 2H and 2020. It revised down its 2019-20 profit estimates
by 8%, implying 6% CAGR in 2019-21. (KL)