[ET Net News Agency, 20 March 2020] HSBC Global Research lowered its target price for
Power Assets (PAH)(00006) to HK$53 from HK$57 and maintained its "hold" rating.
The research house said weakness in PAH's earnings was attributed to unfavourable FX
rates and lower contribution from the UK portfolio and HK Electric (02638). Also,
businesses in Hong Kong faced lower permitted returns since Jan 2019 under the new scheme
of control (SoC).
HSBC assumed a lower share of profits from associates/JVs due to regulatory resets in
Australia in 2020. It also expects lower finance costs based on 2019 actual. It cut its
2020-21 earnings forecasts by 9%. (KL)