[ET Net News Agency, 24 June 2020] Daiwa Research lowered its target price for
Guangdong Investment (GDI)(00270) to HK$17.1 from HK$17.2 but upgraded its rating to "buy"
from "outperform", given a still decent 4.4% 2020 dividend yield and negatives likely
priced in.
The research house said GDI's share price has corrected by 10% since 1 June, likely due
to investors' concerns on its potentially weak 1H results. Daiwa thinks GDI's balance
sheet remains healthy and it can support 6-7% DPS growth in 1H.
Daiwa expects the overhang of the 2021-23 Dongjiang water price for HK to be removed by
October 2020. It cut its 2020-22 EPS forecasts by 2-3% on lower assumptions for rental
income and other segment revenue. (KL)