[ET Net News Agency, 31 August 2018] Goldman Sachs cut its target price for Shanghai
Industrial (SIHL)(00363) to HK$25 from HK$27.5 on lower market prices of listed assets,
and maintained its "buy" rating.
The research house said SIHL's 1H core net profit would have grown 15% yoy, slowing down
from 22% in 2H 2017 and 40% in 1H 2017 as the earnings boost by the past round of M&A in
infrastructure gradually phased out.
At the result conference, management re-affirmed its intention to seek growth through
M&A both within and outside of existing business lines, preferably in cash generative
assets.
Goldman fine-tuned its FY2018-20 EPS forecast by -1% to 3%. (KL)