[ET Net News Agency, 10 December 2018] Citi Research lowered its target price for China
Hongqiao (01378) to HK$6.4 from HK$7.8 and maintained its "buy" rating.
It said the high rate of self-sufficiency in alumina and power gives Hongqiao a clear
cost advantage over its peers. However, Citi noted that power reform is not settled yet in
China. Citi modeled in that 50% of the cross-energy subsidy will have to be paid by
Hongqiao in 2019/20 and full government levies in 2020.
Citi revised Hongqiao's 2019/20 earnings forecasts down by 53%/35%, mainly to factor in
lower aluminum price assumptions in 2019/20 by 11%/9% and lower alumina price forecasts
(by -8.9%/-9.6% in 2019/20). (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
01378 CHINAHONGQIAO
Nominal 
10.780 +0.400 (+3.854%) Others
10/12/2018 14:47
[I-bank focus]Citi trims China Hongqiao (01378) to HK$6.4
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