BOCOM International Research lifted its target price for China Everbright Greentech (CEG) (01257) to HK$4.65 from HK$4 and maintained its "buy" rating.
With massive project starts planned in FY2021, the research house believes CEG's operational revenue will recover strongly starting this year. BOCOM cut its FY2020-22 reported earnings by 14%/2%/7% after factoring in the updated project pipeline. It noted an impairment loss in FY2020 on subsidy policy change, but the worst is likely over.
BOCOM expects CEG's steam sales volume CAGR to reach >30% in FY2020-22.