[ET Net News Agency, 23 April 2018] UBS Global Research cut its target price for COSCO
Shipping Port (01199) to HK$9.9 from HK$10.5, and reiterated its "buy" rating.
The research house maintained its view that COSCO SHIP Port will benefit from its
aggressive expansion strategy in China. It believes the company will also succeed in its
aggressive five-year plan to double net profit and that the stock deserves to re-rate.
UBS thinks market concerns about the NDRC's proposed port tariff cut and the potential
for a China-US trade war are exaggerated, and that the 22% share price correction over the
past five months is overdone.
It anticipates a very small or neutral impact from the NDRC's proposed tariff cut on the
company's revenue/TEU. UBS noted that at the 1Q 2018 results call last Friday, HPH Trust's
management confirmed that the proposed tariff cut would have almost no impact on Yantian's
average revenue. (KL)