[ET Net News Agency, 21 June 2019] Deutsche Bank trimmed its target price for CLP
Holdings (00002) to HK$78 from HK$79 and maintained its "sell" rating.
The research house said CLP released a profit warning as it expects to make a reduction
in the goodwill attributable to its EnergyAustralia Retail business. Management sees no
other potential regulatory change which could trigger further impairment on goodwill. It
is still positive on EnergyAustralia and believes that it is a good business with its
natural hedge between retail business and wholesale business.
The research house lowered its recurring earnings forecasts by 2% for 2019 while keeping
2020 unchanged as it factored in latest FX and business updates. (KL)