Morgan raises CNBM (03323) target to HK$19.8, "overweight"

  <ET Net News Agency, 16 September 2010>  Morgan Stanley raised its target price for
CNBM (03323) to HK$19.8 from HK$19, and maintained its "overweight" rating.
  The house said it lowered its cost of equity (COE) assumption from 11.6% to 11.1% as a
result of balance sheet improvement and the removal of placement overhangs.  Together with
solid industry fundamentals, Morgan believes the shares deserve a re-rating.
  It calculated that EPS dilution from placement would be 2% and 5% for 2010 and 2011,
after interest expense savings.  But the gearing ratio will fall to 168% by 2010 and 146%
by 2011 from 248% at end-1H10.