<ET Net News Agency, 22 October 2010> Morgan Stanley raised its target price for China
National Building Material (03323) from HK$19.8 to HK$24, and maintained its "overweight"
rating.
It believes the power cuts in Anhui province and continued power restrictions in
neighboring provinces have resulted in reduced production in September and will help
accelerate the phase-out of energy inefficient plants.
Morgan also lowered its cost of equity assumption from 11.1% to 10.7%, to reflect its
stronger confidence in supply side restructuring.
The house forecast production rates to remain low in 4Q, which is positive for pricing.
【你點睇？】港交所推每周股票期權新選擇，若能新增一隻作每周股票期權標的，您會選擇哪一隻？► 立即讚好
