[ET Net News Agency, 2 September 2019] Goldman Sachs lowered its target price for China
Merchants Port (CMP)(00144) to HK$18.2 from HK$18.8 and maintained its "buy" rating.
The research house said CMP's 1H core net profit of HK$2bn was in line with its
expectations. The company noted the adoption of the new lease accounting standard
(HKFRS16) had an HK$20mn negative impact on its financials in 1H, adjusted for which, its
earnings would have been down 5%.
Looking into 2H, management remains cautious on its volume outlook, guiding flattish
FY2019 volume overall with flattish domestic volume and mid-digit growth in the overseas
volume.
Goldman lowered its FY2019-21 core EPS forecasts by 4-5% factoring in the latest volume
trend and CNY depreciation. (KL)