[ET Net News Agency, 23 January 2018] Daiwa Research cut its target price for COSCO
Shipping Ports (CSP)(01199) to HK$9 from HK$9.3 adjusting our throughput and ASP
assumptions, but upgraded its rating to "outperform" from "hold" given its outlook for
stable earnings growth for 2018-19.
The research house adjusted its 2017-19 earnings forecasts for CSP after an antitrust
probe into China's port operations by the NDRC in November 2017 and higher-than-expected
throughput growth for 2017.
Due to the stronger-than-expected expansion of container throughput and new policies,
Daiwa lifted its throughput assumptions for 2017-19 and lower ASPs for 2018. It also
revised up its 2017 EPS forecast by 8% to reflect the higher-than-expected throughput
growth, but trimmed 2018-19 EPS estimates by 1% to factor in the possible impact from
tariff cuts. (KL)