[ET Net News Agency, 9 January 2020] Goldman Sachs lowered its target price for China
Hongqiao Group (01378) to HK$4.9 from HK$5.7 and maintained its "neutral" rating.
The research house revised its earnings estimates for Hongqiao by -7% for 2019, -29% for
2020, and -42% for 2021 to reflect its updated view on aluminum/alumina sector outlook.
Goldman expects Chinese aluminum supply/demand balance to weaken in 2020, with 5%
incremental deterioration on capacity utilization, mostly driven by accelerated new
capacity additions, despite our expectations of potential recovery in demand from
contraction in 2019 to positive 1.8% in 2020. (KL)