[ET Net News Agency, 30 July 2019] Daiwa Research lifted its target price for CGN Power
(01816) to HK$2 from HK$1.8 and maintained its "underperform" rating.
CGN has obtained the official written approval for its A-share IPO from CSRC on 26 July.
The research house expects the A-share IPO to be beneficial in terms of lower gearing, but
this may have been factored in its current share price (+20% year-to-date).
Daiwa thinks CGN may continue to see a GPM drop this year, while future VAT rebate will
be impacted by VAT-inclusive tariff cut. It cut its 2019 EPS by 5% on more conservative
assumptions for power output. (KL)