[ET Net News Agency, 4 August 2020] Nomura lowered its target price for CLP Holdings
(00002) to HK$80.5 from HK$85.4 and maintained its "neutral" rating.
The research house remains confident in CLP's ability to deliver steady dividends (2%
CAGR during 2019-22) thanks to adequate free cash flows despite near-term challenges. Its
1H dividend yield of 4.1% implies a spread of 350bps over the US 10-year Treasury, which
is at a historical high since 1998.
As such, Nomura sees CLP's valuation well-supported at the current level. Nomura trimmed
its 2020/21 EPS estimate by 2% each to reflect weaker contributions from Australia. (KL)