[ET Net News Agency, 4 March 2019] Morgan Stanley assumed coverage of Guangdong
Investment (GDI)(00270) with an "equal-weight" rating and a price target of HK$15.43.
It believes GDI deserves a higher valuation given its high earnings quality and stable
DPS growth underpinned by its defensive business model and strong cash flow position.
GDI is under a good financial position for M&A opportunities, given that its defensive
water supply contract with Hong Kong generates strong cash flow. As of end 1H 2018, GDI
was in a net cash position, with cash on hand of HK$10,277mn, up from HK$7,565mn as of the
end of 2017. (KL)