[ET Net News Agency, 6 June 2019] Citi Research cut its target price for Power Assets
(PAH)(00006) to HK$64 from HK$68 and maintained its "buy" rating.
The research house said PAH's reported net profit of HK$7,645m in 2018 was 2% below
consensus probably due to weaker than expected underlying earnings from the UK amid BREXIT
and regulatory reset concerns as well as less than anticipated profit from Australia owing
to AUD/HK$ depreciation.
Citi lowered its net profits forecasts for PAH by 5-7% for 2019-20 mainly for more
prudent assumptions for the UK businesses, earning revisions of HKEI (02638) and factoring
in the latest exchange rates.
Citi forecast its net profit to fall 2.4% to HK$7,452m in 2019 mainly due to less profit
from China as its 1,400MW Zhuhai coal-fired plant and 200MW Siping cogeneration plant.
(KL)