[ET Net News Agency, 22 October 2019] Citi Research lowered its target price for China
Everbright International (CEI)(00257) to HK$7.2 from HK$8.5 and maintained its "buy"
rating.
The research house said China aims to reduce tariff subsidy for new waste-to-energy
projects. Citi expects an announcement to be made in 4Q. It assumed EBITDA margins of CEI
environmental energy segment to fall -1ppt p.a. in 2020-25, including that of construction
services from 24% in 2020 to 19% in 2025 and that of operations from 39% to 34% in the
same period. (KL)