[ET Net News Agency, 3 April 2018] HSBC Global Research lifted its target price for
Guangdong Investment (GDI)(00270) to HK$14 from HK$13.2, and reiterated its "buy" rating.
The research house said GDI reported in-line 2017 result. However, gross margin
contracted by 7ppts, mainly due to a margin squeeze from the power generation segment as a
result of a higher coal price.
Incorporating FY2017 full-year actual results, HSBC revised its NPAT forecast slightly
by -1% and -2% for 2018/19. It believes the earnings contribution from other water
resources projects and the development of Panyu Wanbo CBD project will be the earnings
growth drivers in the near future. (KL)