[ET Net News Agency, 2 November 2017] Nomura tweaked its target price for China
Communications Construction (CCCC)(01800) to HK$9.14 from HK$9.15, and upgraded its rating
from "reduce" to "neutral".
The research house cut its EPS forecasts by 11% for FY2017-19 mainly on lower new
contracts forecasts and higher admin expenses assumptions.
Nomura said the stock's valuation fair at 7.2x FY2018, with some discount to the peers'
average of 9.3x given its relatively poor cash flow profile.
Nomura would turn bullish on the stock if cash flows show material and consistent
improvements. It prefers China Railway Construction (01186) for stronger earnings growth.
(KL)