[ET Net News Agency, 15 October 2019] Morgan Stanley lifted its target price for HK
Electric Investments (HKEI)(02638) to HK$8.6 from HK$7 and upgraded its rating to
"overweight" from "equal-weight".
The research house said HKEI's decreased earnings and dividend cut in 2019, reflecting
the return on the new SOC (Scheme of Control), have been well anticipated in advance. Cost
savings should arise from loan refinancing amid falling interest rates.
HKEI would have an HK$5.85bn bond issue and HK$17.8bn in bank loans to be refinanced
in 2020 and 2021, respectively. DPS could rebound in two years. Morgan expects DPS to
rebound to 2018's level in five years' time. It projected yield at 5.4% in 2024, higher
than CLP's (00002) 4.6%, assuming CLP's DPS grows at 3.5% p.a.
Morgan said HKEI is the purest HK utility play, with 100% of earnings from HK: Thus. it
faces minimal uncertainties from other regions, such as the regulatory and currency risks
from CKI (01038) and PAH's (00006) UK assets and CLP's Australia portfolio. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
02638 HKELECTRIC-SS
Nominal 
4.690 +0.010 (+0.214%) Others
15/10/2019 11:45
{I-bank focus}Morgan lifts HK Electric (02638) to HK$8.6
| Remark: | Real time quote last updated: 25/04/2024 15:17 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |