[ET Net News Agency, 28 November 2018] Morgan Stanley initiated coverage on China Conch
Venture Holdings (00586) with an "overweight" rating and a target price of HK$36.65.
It said Conch Venture is emerging as the largest hazardous waste co-processing developer
in China, backed by solid management execution and Conch Cement's (00914) plentiful
resources.
Morgan forecast net profit growth of 9.7% in 2019 and 15.2% in 2020 - higher than that
of Conch Cement at 4.2% and 3.4%. ROE of 24%/23% in 2019/2020 also surpasses Conch Cement.
Conch Venture also has a stronger balance sheet and highest returns versus solid waste
treatment peers, per Morgan's assessment. (KL)