[ET Net News Agency, 12 March 2019] Daiwa Research lifted its target price for
Guangdong Investment (GDI)(00270) to HK$17.2 from HK$17 and maintained its "outperform"
rating.
The research house expects investors to start taking profit towards the end of March and
turn to defensive names like GDI, with the Hang Seng Index rising 10% year-to-date.
In the meantime, the Fed is becoming more dovish on rate hikes in 2019, which Daiwa
believes will support further yield gap expansion for GDI and strong 10% YoY DPS growth
over 2018-20.
Daiwa forecast GDI to achieve 10% YoY DPS growth over 2018-20, as it expects the company
to only record a 65-70% payout (on recurring EPS), on a 7% recurring net profit CAGR over
2018-20. (KL)