[ET Net News Agency, 18 June 2020] Daiwa lowered its target price for China
Communications Construction (01800) to HK$6.6 from HK$6.8 and maintained its "buy" rating.
The research house said given the more than CNY300m in operating revenue in 2019 from
the bridge asset and the invested capital of CNY2.7bn as at end-2019, it expects the ROE
of the project to be 10-15%. CCC estimates the asset size of its operating PPP/BOT
projects to reach CNY500bn in the coming 5 years. It projects that by launching more REIT
products for its operating assets, CCC will be able to unlock CNY25-50bn of cash to repay
loans or for reinvestment, assuming 5-10% of the assets can be packaged and sold as REITs.
(RC)