[ET Net News Agency, 25 January 2018] UBS Global Research lifted its target price for
Beijing Enterprises Holdings (BJE)(00392) to HK$60 from HK$57, and maintained its "buy"
rating.
Given the brewery business's improved outlook, the research house believes this
translates to a higher value for BJE either via a higher profitability, or asset
rationalisation in the event of a potential spin-off of its brewery stake. In addition,
UBS believes potential investment in underground gas storage with PetroChina could be
BJE's new growth area in the gas segment.
The research house said these are not factored in by the market and could drive a share
price re-rating for the company. (KL)