[ET Net News Agency, 18 May 2018] Daiwa Research raised its target price for Guangdong
Investment (GDI)(00270) to HK$14.7 from HK$12.8, and upgraded its rating to "buy" from
"outperform".
The research house said GDI shares are up 22% year-to-date. Daiwa forecast modest net
profit growth in the coming years, with various segments growing steadily, but it believes
GDI's sound net-cash (HK$2.2bn at end-2017) status and stable cash inflows (HK$4.8bn pa)
from the Dongjiang project will support its targeted 20% CAGR in dividend for 2018-19 and
sharpen its competitive edge in gaining new water projects.
In 2018, GDI has won two new water projects with a WWT capacity of 85.3 ktpd and a water
pipeline PPP project. With interest rates rising, Daiwa thinks GDI's strong financial
status will enhance its competitiveness in winning new projects. (KL)