[ET Net News Agency, 6 May 2020] Morgan Stanley lowered its target price for China
Communications Construction (CCCC)(01800) to HK$6.9 from HK$8.1 and maintained its
"overweight" rating.
The research house said construction progress of CCCC's overseas projects has been
delayed by the COVID-19 outbreak, which will drag on CCCC's revenue growth in 2020;
however, Morgan is positive on the overseas business recovery in 2021. It expects the
company's overseas contracts to increase at a 12% CAGR in 2019-2021.
Morgan lowered its 2020, 2021 and 2022 overseas revenue growth forecasts from 15%, 10%
and 10% to -3%, 5% and 5%, respectively. Accordingly, its 2020/21/22 EPS forecasts fell
5%/9%/12% to Rmb1.26/Rmb1.35/Rmb1.41, respectively. (KL)