[ET Net News Agency, 24 June 2020] Morgan Stanley cut its target price for China
Communications Construction (CCCC)(01800) to HK$6.6 from HK$6.9 and maintained its
"overweight" rating.
The research house estimated CCCC's newly signed contracts should grow 13% in 2H and 8%
in 2020. CCCC's newly signed contracts increased by 12% in 1Q versus 13% in 1Q 2019,
reflecting the increase of 36% in municipal and environment projects.
Morgan lowered its revenue growth forecasts for construction by 1ppt, 2ppt, and 3ppt to
5%, 9%, and 6% over 2020-22, respectively. It estimated CCCC's earnings grow at a 5% CAGR
over 2020-22. (KL)