[ET Net News Agency, 23 March 2020] Huatai Research cut its target price for Shenzhen
International Holdings (SZI)(00152) to HK$18.4 from HK$19.7 and maintained its "buy"
rating.
The research house said SZI's 2019 net profit was 5.8% lower than Huatai's expectations.
Huatai expects COVID-19 to significantly impact SZI's toll road and airline businesses in
2020. It adjusted its 2020/21 net profit forecasts by -20.5/14.1% to HK$5,222/HK$3,850mn.
China suspended highway toll charges nationwide from 17 February to help business
resumption from COVID-19. Although this has helped the traffic volume of China's
expressways to recover quickly, Huatai believes it will hurt the profit of the toll road
sector in 2020. (KL)