[ET Net News Agency, 5 September 2018] Daiwa Research lifted its target price for
Beijing Enterprises (BEH)(00392) to HK$43.5 from HK$43, and maintained its "outperform"
rating.
The research house hosted a 1H post-results NDR for BEH where management disclosed that
it has started discussions with the State-owned Assets Supervision and Administration
Commission (SASAC) this year on issuance of a new employee share scheme.
Processing generally takes 1 year, hence the scheme could potentially be approved in
2019. Daiwa sees upside to its 20% dividend payout policy with approval of the scheme.
With the launch of an employee share scheme, Daiwa also sees potential room for hikes in
the dividend payout for BEH as capital efficiency is likely to be a key metric in the
performance assessment for the scheme, hence management is likely to distribute any excess
capital.
Daiwa raised its 2018-20 EPS forecast by 8-9%. (KL)