[ET Net News Agency, 16 November 2017] Goldman Sachs trimmed its target price for
Beijing Capital International Airport (BCIA)(00694) to HK$11.7 from HK$12.5, and
maintained its "neutral" rating.
BCIA yesterday announced an agreement with its parent company, Capital Airports Holding
to extend its retail management agreement relating to the operation and management of its
international retail operations. This will run from 1 January 2018 to 31 December 2020.
The research house said rates agreed implying costs to BCIA will be higher than Goldman
had expected. The fees payable under BCIA's new retail management agreement are 22% of its
annual retail revenues ( Goldman estimated 12%). Henec, Goldman cut its 2017-19 EPS
forecasts by 0-10%. (KL)