[ET Net News Agency, 2 June 2020] J.P. Morgan lowered its target price for CLP Holdings
(00002) to HK$90.8 from HK$100.5 and maintained its "overweight" rating.
The research house thinks CLP has the best potential to return to a DPS growth trend,
starting next year when COVID-19 impact on its generation business in China, India &
Australia is behind us. Its HK operation, equaling 60% of total earnings, will grow at 4%
p.a., inline with fixed assets growth, and can support CLP's HK$8bn p.a. dividend payment.
JPM cut its CLP 2020-23 EPS estimates by 3-5% to factor in weaker-than-expected 1Q
results. (KL)