[ET Net News Agency, 17 January 2018] J.P. Morgan trimmed its target price for Country
Garden Holdings (02007) to HK$22.7 from HK$24, and maintained its "overweight" rating.
The research house reduced its fully diluted core FY2018/19 EPS estimates by 5.13%/4.88%
to reflect dilution in FY2018 due to Country Garden's proposed share placement and
convertible bond issue.
JPM assumed the share placement will go through, and all convertible bonds will be
converted to shares by end-2018. Its price target is based on a target P/E of 13x (no
change) on 2018 fully diluted core EPS. (KL)