[ET Net News Agency, 2 November 2018] Morgan Stanley lowered its target price for CIMC
Enric Holdings (03899) to HK$6.8 from HK$7.1 to reflect a sharp decline in LNG cylinder
sales and chemical equipment gross margin erosion, and maintained its "equal-weight"
rating.
The research house expects Enric's gross margin to improve in 2019-20 thanks to rising
contribution from scale-up of the high-margin storage tank business. However, pressure has
remained in 2H given continued weak LNG cylinder demand.
Morgan thinks Enric is fairly valued at 12x 2019 P/E, and reflects positive market
sentiment spurred by rising gas storage policy. That P/E is higher than Chinese equipment
manufacturing peers (11x on average) and in line with its 10-year average P/E of 12x. (KL)
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03899 CIMC ENRIC
Nominal 
7.900 -0.150 (-1.863%) Others
02/11/2018 15:34
[I-bank focus]Morgan lowers CIMC Enric (03899) to HK$6.8
| Remark: | Real time quote last updated: 10/05/2024 17:59 |
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