[ET Net News Agency, 31 August 2020] Goldman Sachs lowered its target price for China
Shenhua Energy (01088) to HK$18.5 from HK$19 and maintained its "buy" rating.
The research house said Shenhua's 1H recurring net profit, excluding one-off items of
other gains and losses, loss allowances and FX gains, was Rmb20.4bn. The result was 3%
higher than Goldman's estimates, partly due to a lower effective tax rate and minorities.
The company maintains all its prior guidance, with 268 mnt of self-mined coal sales in
2020, down 5% versus 2019. Goldman revised its earnings by -9% for 2020, -7% for 2021, and
-11% for 2022 to reflect the lower unit profit from non-core segments as implied from 1H
results. (KL)