[ET Net News Agency, 1 February 2018] Daiwa Research lifted its target price for CIMC
Enric (03899) to HK$10 from HK$8.8, and maintained its "buy" rating.
The research house noted that on 24 January, the Hebei Development and Reform Commission
issued a policy requiring that: (1) county-level or higher governments in the province
have at least a 3-day emergency reserve capacity, and (2) city-gas distributors have
storage capacity equivalent to 5% of their annual contracted volume, by the start of the
2019 heating season.
Daiwa said the move confirms its view that a stricter LNG storage policy will be rolled
out after the 2017-18 supply tightness. It expects Enric's outperformance to continue as
more storage policies are announced. (KL)