[ET Net News Agency, 10 December 2018] Citi Research lowered its target price for China
Shenhua Energy (01088) to HK$24.8 from HK$25.1 and maintained its "buy" rating.
The research house expects coal production to grow 5.5%/3% vs demand growth of 1.9%/1.7%
in 2018/19. Citi expects the government designated range for coal price is valid and the
overall policy direction in 2019 will still be promoting advanced coal capacity.
It prefers the coal sector for 1H 2019 given market expectations on coal price are
already low. Shenhua's defensive business model ensures higher earnings visibility. Citi
forecast the Bohai Rim coal price at Rmb540/t in 2019 and Rmb535/t for 2020.
Citi slightly lowered its bottom-line forecasts by 3.2%/4.0% for 2019/20, factoring in
higher unit self-produced coal cost and a drop in power tariff of 1%/2% in 2019/20. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
01088 CHINA SHENHUA
Nominal 
32.150 +0.450 (+1.420%) Others
10/12/2018 15:56
[I-bank focus]Citi lowers China Shenhua (01088) to HK$24.8
| Remark: | Real time quote last updated: 25/04/2024 15:21 |
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