[ET Net News Agency, 4 March 2019] UBS Global Research lifted its target price for
Guangdong Investment (GDI)(00270) to HK$16.4 from HK$16.2 but downgraded its rating to
"neutral" from "buy".
The research house said GDI has rallied 45% since the beginning of 2018. The stock is
now trading at 18.4x 2019 PE and 3.9% 2019 dividend yield; at a premium to most peers and
also its historical average.
UBS thinks the current valuation has already priced in GDI's defensive nature, faster
growth from its water business (except the Dongjiang project), as well as its high
dividend payout.
UBS thinks further upside could come from the potential injection of the Xijiang water
project. However, management has said it is too early to discuss the asset injection, so
the research house does not expect it to happen any time soon. (KL)
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00270 GUANGDONG INV
Nominal 
3.690 +0.180 (+5.128%) Research Report
04/03/2019 14:19
[I-bank focus]UBS lowers Guangdong Inv (00270) to "neutral"
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