[ET Net News Agency, 14 April 2020] Daiwa Research lifted its target price for Power
Assets (PAH)(00006) to HK$52.5 from HK$48 and maintained its "outperform" rating.
Despite PAH's 2020 yield falling from 6.7% to 5.6% over the past two weeks, the research
house said believes PAH's yield is appealing given other Hong Kong sectors, such as
property and banks, are seeing either DPS cuts or DPS suspension in the current COVID-19
pandemic environment.
Management reaffirmed a long-term stable HK$2.8 DPS, with its HK$5.0-5.5bn operating
cash flow, supported by the company's end-2019 net cash of HK$1.6bn.
Daiwa raised its 2020-22 EPS forecasts by 2% to reflect the recent recovery of the GBP
against the HKD. (KL)