[ET Net News Agency, 4 September 2018] HSBC Global Research raised its target price for
China Merchants Port (CMP)(00144) to HK$20 from HK$19.35, and maintained its "buy" rating.
The research house said CMP's 1H recurring profit was up only 4% to HK$2.2bn. However
reported profit increased 73% to HK$5.4bn driven by the HK$3.7bn post-tax gain on disposal
of its stake in Shenzhen Chiwan Wharf.
On trade tensions, while management believes that trade would divert and not disappear,
it was concerned that further deterioration could hurt China's port volumes.
HSBC increased its 2018-20 profit estimates by 4-6%. It now reflects the higher revenue
and operating profit base of TCP in Brazil in its estimates, but these are offset to some
extent by higher finance costs, taxes and share of minorities. (KL)