[ET Net News Agency, 7 September 2018] Morgan Stanley cut its target price for Shenzhen
International Holdings (SZI)(00152) to HK$20.47 from HK$21.5, and maintained its
"overweight" rating.
The research house cut its 2018-19 earnings estimates, mainly led by: (1) FX losses from
weaker exchange rates for RMB/USD given foreign debt exposures; and (2) lower disposal
gains in 2018-19.
However, Morgan is impressed with the solid operating results from both toll roads and
logistics, which surged by 26% and 50%, respectively, in 1H, beating its expectations.
Morgan views the stock as being significantly undervalued at only 7.5x 2019 P/E, while
its conservative estimate of its Qianhai land values account for 71% of its current market
cap. (KL)