[ET Net News Agency, 29 January 2019] Daiwa Research lowered its target price for
Beijing Enterprises Water (BEW)(00371) to HK$5.9 from HK$6 and maintained its "buy"
rating.
After a disappointing 36% share price fall in 2018, the research house expects BEW to
see a gradual recovery over 2019-25 on (1) near-term relaxation of water-PPP projects, (2)
medium-to-long-term project opportunities along the Yangtze River (CNY1tn) with Three
Gorges Group (Three Gorges), and (3) long-term water-renovation opportunities in
Baiyangdian Lake (CNY30bn) adjacent to Xiong'an in Hebei.
After considering the 6% share dilution on China Yangtze Power's (Shanghai code: 600900)
471 million new shares subscription, Daiwa lowered its 2019-20 EPS forecasts by 4-6%. (KL)