[ET Net News Agency, 21 June 2018] HSBC Global Research lowered its target price for
China Hongqiao (01378) to HK$10.1 from HK$12.5, and retained its "buy" rating.
The research house said SHFE aluminium prices remain under pressure in the year to date
as a result of high inventory and relatively slow demand pick-up. Capacity closures in 2H
2017 have helped to reduce some supply glut, but the effort was overshadowed by the
build-up of a large inventory pile, which increased by 76% from 1,228kt to 2,162kt (from
July 2017 to March 2018).
HSBC said inventory stopped growing from April 2018, and is now falling slowly. However
given the size of the inventory, HSBC expects it will take at least six months to de-stock
properly.
Considering the reduced production capacity and cost pressure, it cut its China Hongqiao
2018/19 earnings estimates by 30% and 17%. (KL)
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01378 CHINAHONGQIAO
Nominal 
11.680 +0.080 (+0.690%) Others
21/06/2018 13:57
[I-bank focus]HSBC lowers China Hongqiao (01378) to HK$10.1
| Remark: | Real time quote last updated: 10/05/2024 17:59 |
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