[ET Net News Agency, 2 June 2020] J.P. Morgan lowered its target price for Power Assets
Holdings (PAH)(00006) to HK$47.1 from HK$55 and maintained its "neutral" rating.
The research house estimated that PAH's free cash flow will decline to HK$5bn in 2024
from HK$5.4bn in 2020, due to lower regulatory returns in the UK and Australia. This puts
the company at risk of a DPS cut with an annual dividend payment of HK$6bn and payout at
90%.
JPM cut its PAH 2020 EPS estimates to factor in the one-off deferred tax loss and
lowered 2021-2022 earnings forecasts to account for reduced return at utility projects in
the UK and Australia. (KL)