[ET Net News Agency, 20 April 2020] HSBC Global Research lifted its target price for
China Tower (00788) to HK$1.7 from HK$1.6 and maintained its "hold" rating.
The research house thinks the downward consensus earnings revisions may finally be
coming to an end. China Tower's weaker 1Q results would have been impacted by COVID-19,
but management said the company has fully resumed work and service. HSBC forecast 2020 net
profit growth of 46%.
HSBC adjusted its FY2020-22 estimates factoring in 1Q results resulting in a 2% downward
revision in 2020 earnings; however, it increased its 2021-2022 earnings estimates by
7%-9%, expecting higher growth in depreciation and amortisation. (KL)