[ET Net News Agency, 6 July 2020] Daiwa Research lowered its target price for COSCO
Shipping Ports (CSP)(01199) to HK$6 from HK$6.6 and maintained its "buy" rating.
The research house cited CSP management noting quick volume recovery in domestic ports
since 2Q. They offered no guidance on its 2020 volume growth but reiterated its stable
dividend payout and prudent financing plans.
CSP targets low double-digit equity IRR (internal rate of return) for its terminal
assets by divesting underperforming assets for capital recycling and pursuing investment
opportunities in strategically emerging regions.
Daiwa cut its 2020-22 net profit forecasts by 10-11% to reflect its lower forecasts for
volumes and margins. (KL)