[ET Net News Agency, 30 January 2018] Daiwa Research lifted its target price for CLP
Holdings (00002) to HK$82 from HK$80, and maintained its "hold" rating.
The research house said CLS, as a pure HK electricity play, stands to cut its 2019
dividend amid the SoC return cut from 9.99% to 8% in 2019. It sees CLP as better
positioned to defend its dividend yield with rising overseas contribution from Australia
and China.
Daiwa estimated overseas earnings to account for 41%/46% of CLP's 2018/19 earnings
(2016: 33%). Thus, it expects CLP's 2019 yield gap to only be squeezed by 0.8pp to 0.5%.
(KL)