[ET Net News Agency, 2 December 2020] HSBC Global Research maintained its target price
for China Shenhua Energy (01088) unchanged at HK$15.61 but downgraded its rating to "hold"
from "buy".
The research house said Shenhua's share price increased over the last three months, is
nearing HSBC's fair value. It noted that Shenhua has been in a net cash position since
2018 and generates an estimated RMB40bn of free cash flow p.a., which is 2x the dividend
requirement.
HSBC left its net profit estimates unchanged at RMB39bn over 2020-22. (KL)