[ET Net News Agency, 18 October 2018] HSBC Global Research tweaked its target price for
CLP Holdings (CLP)(00002) to HK$94 from HK$95 on rollover, and maintained its "hold"
rating.
Starting October, the new Scheme of Control (SoC) agreement has begun for CLP at a lower
regulated ROA of 8% (from 9.99%) for the next 15 years, which was well expected by the
market, said he research house.
HSBC said CLP's wind and solar power generating assets performed well, driven by lower
curtailment. However, hydropower projects were affected due to weather conditions and
lower rainfall.
It revised down its 2018-20 earnings forecasts by 0-2% to incorporate the latest FX
assumptions and other macro assumptions such as risk-free rate 3% (from 2.5%) and risk
premium 4% (from 5%). (KL)