[ET Net News Agency, 13 October 2020] Morgan Stanley cut its target price for Shenzhen
International Holdings (SZI)(00152) to HK$14.5 from HK$16.1 factoring in the valuation for
Shenzhen Expressway and Shenzhen Airlines and land NAV, given Morgan's bearish view on the
airlines' industry, and uncertainties to land value recognition.
Morgan maintained its "overweight" rating.
The research house revised its 2020-22 earnings forecasts by +1.4%, -0.5%, and +0.4%,
respectively, after (1) factoring in its earnings forecasts for Shenzhen Expressway, and
(2) fine-tuning earnings forecasts after 1H results.
Morgan expects a 20% decline in SZI's net profit in 2020 due to the negative impact of
COVID-19. It expects SZI's toll road and logistics segments to resume profit growth in
2021 and 2022. (KL)