[ET Net News Agency, 16 July 2018] Citi Research maintained its Hang Seng Index (HSI)
target of 34,500. Its top-down approach delivers a 2018 HSI target of 34,000. HSI is
currently trading at ~12.5x FY2018 P/E, versus the historical average of 12.5x.
The research house said its FY2018 HSI earnings integer of 2,303 implies YoY growth of
~21%, being the most bullish growth forecast since 2010.
Citi believes a higher multiple is justifiable for HSI, given the increasing fund flows
from Stock Connect.
It maintained its favor towards Macau gaming and select office and retail property
plays. Citi reiterated its "buy" on Swire Pacific (00019) in the conglomerates space and
CKI (01038) among the utilities names. But it is underweight HK developers. (KL)