[ET Net News Agency, 12 June 2018] UBS Global Research raised its target price for
Guangdong Investment (GDI)(00270) to HK$16.2 from HK$11.6, and upgraded its rating to
"buy" from "neutral".
The research house believes the company will re-focus its growth on the water segment
either through organic expansion or asset injections from its parent, Guangdong Holding
(GDH), which is not priced-in by the market.
UBS thinks the 24% increase in GDI's share price year-to-date mostly reflects the higher
value of its rental property business (25% of NPV) given GDI's shares significantly lagged
the Chinese property sector last year. It believes the asset injection potential and
attractive dividend yield will continue to drive a re-rating for the company.
UBS cut its 2018/19 earnings estimates by 3/5% mainly due to lower earnings from the
property business, but raised its long-term earnings by 10% from 2020 onwards to reflect
faster growth in the water business. (KL)
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00270 GUANGDONG INV
Nominal 
3.820 +0.130 (+3.523%) Others
12/06/2018 11:44
[I-bank focus]UBS upgrades Guangdong Inv (00270) to HK$16.2
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