[ET Net News Agency, 22 January 2019] Daiwa Research lifted its target price for COSCO
Shipping Ports (CSP)(01199) to HK$11.4 from HK$10.2 and maintained its "buy" rating.
The research house said, citing the management of CSP, the company expected double-digit
YoY volume growth in 2019, led by continual capacity expansion and an additional
contribution from new ports.
However, it expects operating costs to rise in 2019 due to the accounting standard
change and commencement of the Abu Dhabi port, but sees the scale as controllable, thanks
to more efficient operations in other regions.
Daiwa raised its 2019-20 volume growth assumptions from 4.2%/3.4% to 7.1%/4.3%. It also
lowered its 2018 EPS forecast by 4% and raised its 2019-20 EPS estimates by 0-1% to
reflect changes in its throughput growth and margin estimates. (KL)