[ET Net News Agency, 16 July 2018] J.P. Morgan lifted its target price for Guangdong
Investment (GDI)(00270) to HK$14.8 from HK$12.4, and reiterated its "overweight" rating.
The research house view GDI as the best defensive name in China utilities with 70% of
earnings from its stable HK water supply contract and rental income. Its net cash position
would support DPS growth of >10% pa and 4.6% yield.
Positive earnings surprise in August possible from lower forex loss and higher property
earnings, JPM added. (KL)