[ET Net News Agency, 31 July 2018] Credit Suisse lowered its target price for China
Resources Phoenix Healthcare (CRPH)(01515) to HK$10.6 from HK$12.3, and maintained its
"outperform" rating.
CRPH announced a new ownership restructuring on the Jing Mei hospital. In the new
structure, CRPH owns 35% of Jing Mei Hospital Group and will continue to manage Jing Mei
and share profit with Jing Mei group.
The research house has completed a sensitivity test on CRPH, based on different profit
sharing assumptions with Jing Mei group and CNIC. The change in structure would have a
negative impact on the company's earnings in the near term.
Credit Suisse cut its 2018 earnings forecast by 11%, assuming CRPH would lose half the
revenue from Jing Mei. (KL)