[ET Net News Agency, 10 September 2020] J.P. Morgan lowered its target price for Power
Assets Holdings (PAH)(00006) to HK$45.6 from HK$47.1 and maintained its "neutral" rating.
The research house said CK Infrastructure Holdings (01038) and PAH have announced the
sale of their Portugal wind assets, with estimated cash proceeds of HK$2bn for each. Along
with the recovery of a HK$300mn equity investment from Zhuhai power plant in 2H, this
should provide some short-term cash flow relief for PAH, which otherwise could see a
shortfall in covering its dividend payment.
JPM added that the final decision for the regulatory reset of the two gas projects in
the U.K. owned by CKI and PAH will be announced in December. Any improvement to total
allowance and return parameters (including ROE) versus the draft could boost the stock.
(KL)