[ET Net News Agency, 18 November 2019] Daiwa Research lowered its target price for
China Railway Construction (CRCC)(01186) to HK$10.8 from HK$11.9 and maintained its "buy"
rating.
The research house lifted its 2019 revenue by 3% but cut gross margin by 3pp. New orders
for 9-month grew strongly by 25%, beating Daiwa's estimate of 12%. Daiwa expects the
growth momentum to sustain in housing, urban rail, and overseas segments in 2020, while
road orders will likely be stable.
Daiwa lifted its 2019-20 EPS forecasts by 2% to factor in the 3Q results and its new
revenue and margin forecasts. (KL)