[ET Net News Agency, 4 September 2019] HSBC Global Research retained its target price
for China Merchants Port (CMP)(00144) unchanged at HK$15 but upgraded its rating to "buy"
from "hold" on favourable risk-reward.
The research house said slower container trade growth, RMB weakness, and a challenging
trade environment cloud CMP's returns outlook.
But HSBC thinks the current price (down 69% from peak of November 2007) reflects these
concerns. It values CMP based on an unchanged 0.65x 2019 PB to reflect HSBC's ROE
expectations (6.2% in 2019-21).
HSBC raised its 2019-21 profit estimates by 1-2%. Its revised estimates imply recurring
profit growth of 9% in 2H and a CAGR of 6.7% in 2018-21. (KL)