[ET Net News Agency, 23 March 2020] Morgan Stanley lowered its target price for China
Coal Energy (01898) to HK$2.53 from HK$3.41 and maintained its "equal-weight" rating,
given its caution on coal price.
The research house said China Coal's 2019 IFRS net profit of Rmb6.2bn was in line with
company guidance.
Morgan raised its 2020 and 2021 net profit forecasts for China Coal by 14% and 10%,
respectively, mainly reflecting higher-than-expected coal production. Following the recent
correction, it expects the share price to rebound in the near term given more compelling
valuation (at 0.2x 2020 PB) and emerging value from implied dividend yield on a better
payout. (KL)