[ET Net News Agency, 13 January 2020] J.P. Morgan lowered its target price for Value
Partners Group (VPG)(00806) to HK$6 from HK$6.4 and maintained its "overweight" rating.
The research house raised its FY2019/20 earnings forecasts by 34%/26% to factor in
better performance fees and investment gains.
Despite JPM's concerns on the momentum of portfolio growth in the near future due to the
uncertainty of social-political conditions in Hong Kong, the research house sees a
potential for the share price to outperform on the back of its inexpensive valuation (7.3%
P/AUM) and higher possibility for more decent performance fees in FY2020 given NAV is much
closer to the high watermark levels. (KL)