[ET Net News Agency, 13 April 2018] Jefferies Research lifted its target price for
China Power International (CPI)(02380) to HK$1.98 from HK$1.22, and upgraded its rating to
"hold" from "underperform".
The research house significantly lifted CPI's earnings forecasts and thus DCF value
because of more green power projects and vastly supportive government policies on green
energy.
However, an already low achieved coal cost (14% discount to spot) will limit its upside
from a much lower coal price. Despite its willingness to pay generous dividends, its high
net debt/EBITDA (6.5x) and low interest cover (1.7x) could mean significant constraints,
Jefferies added. (KL)