[ET Net News Agency, 30 August 2018] HSBC Global Research raised its target price for
China Conch Venture (CCV)(00586) to HK$36 from HK$33, and maintained its "buy" rating.
The research house said CCV's 1H core earnings of RMB289m missed its estimate.
In 1H, several planned waste incineration projects saw delays in construction due to the
delay in the approval of environmental assessment. The maintenance process of cement kilns
was delayed due to strong cement demand. But HSBC said both issues have now been resolved,
and management does not expect further delays going forward.
CCV guided revenue of RMB414m for solid/hazardous waste and RMB1.4bn for waste
incineration for FY2018. HSBC increased its earnings forecasts by 21-24% for 2018-20,
after incorporating 1H actual results, higher-than-expected margin for the solid/hazardous
waste solution business due to higher prices. (KL)