[ET Net News Agency, 3 September 2019] Daiwa Research lowered its target price for
China Railway Group (CRG)(00390) to HK$5.9 from HK$7.3 and maintained its "outperform"
rating.
The research house cited CRG management from an analyst briefing indicating a better
outlook for 2H, given the policy support on local government financing. The company also
expects to improve operating cash flow and a lower liabilities-to-assets ratio for 2019.
Daiwa cut its 2019-21 core EPS forecasts by 7-11% to reflect the worse-than-expected 1H
results and new assumptions on margins and operating expenses. (KL)