[ET Net News Agency, 24 March 2020] Goldman Sachs lowered its target price for China
Coal Energy (01898) to HK$2.3 from HK$2.5 but upgraded its rating to "neutral" from
"sell".
The research house said China Coal's FY2019 results were mostly in line with Goldman's
expectation. Goldman assumed the deeper end of the discount versus its historical
valuation for China Coal to reflect the long-term downside risk in earnings based on
NDRC's energy plan.
It estimated the supply/demand of the coal market to remain mostly balanced in 2020, as
lower demand partly offset by output disruption in the early part of the year. Goldman
revised down its net profit estimates by 7.4% for 2020 and 1.2% for 2021, mostly to
reflect the lower coal chemical profit, partly offset by better costs in coal. (KL)