[ET Net News Agency, 9 January 2018] BofA Merrill Lynch lifted its target price for
Conch Venture (CV)(00586) to HK$23 from HK$20, and maintained its "buy" rating.
The research house believes CV is attractive at current levels given strong project
wins: CV won 14 projects in 2017: 5 solid waste, 7 grate furnace, 2 cement kiln. With
cooperation with Dongjiang Environmental (DJE)(00895), project ramp-up and utilization of
CV's hazard waste capacity would accelerate.
In addition, it noted strong growth in core NPAT from 2018. BofAML sees a wave of new
projects coming into operation in late 2017 (solid waste +100% to 518kt, grate furnace
4.4x to 540kt); thus income from operations should spike in 2018. Core profit growth
should resume to >50% in 2018-20.
BofAML said CV has net cash position of HK$1.3/share and gives 4% dividend yield. It
raised 2017-19 NPAT forecasts by 10-16% factoring in latest projects wins and its latest
estimates for earnings contribution form Conch Cement (00914). (KL)
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00586 CONCH VENTURE
Nominal 
5.220 -0.060 (-1.136%) Others
09/01/2018 17:54
[I-bank focus]BofAML lifts Conch Venture (00586) to HK$23
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