[ET Net News Agency, 29 August 2018] Morgan Stanley raised its target price for COSCO
SHIPPING Ports (CSP)(01199) to HK$9.31 from HK$7.04, and maintained its "overweight"
rating.
The research house said CSP's 1H net profit of US$169mn accounts for 64% of Morgan's
previous full-year estimate. Key takeaways from analyst briefing are: (1) Support from
parent group and the OCEAN Alliance is likely to continue. (2) Lower capex guidance due to
more cautious expansion in China and overseas. (3) Effects from tariff cuts are well
hedged with higher volumes and more value-added services. (4) Limited impact on US route
volumes year-to-date.
Morgan raised its 2018-20 earnings forecasts by 25%, 23% and 25% following the better 1H
results. (KL)