[ET Net News Agency, 17 March 2020] Daiwa Research lowered its target price for CLP
Holdings (00002) to HK$81 from HK$88 and downgraded its rating to "hold" from
"outperform".
The research house said CLP's share price has outperformed the HSI by 13% year-to-date,
likely due to the market's preference for defensive yield names in the low-interest-rate
environment caused by the global COVID-19 outbreak.
However, Daiwa believes CLP's Australia business is faced with several challenges due to
the full-year impact of a regulatory change in its net retail tariff and weak wholesale
electricity price on abundant LNG (liquefied natural gas).
Daiwa trimmed its 2020-21 EPS forecasts by 2% to reflect the weaker performance of its
Australia business. (KL)