[I-bank focus]HSBC lowers China EB Int'l (00257) to HK$9.4

    HSBC Global Research lowered its target price for China Everbright International (CEI)(00257) to HK$9.4 from HK$9.9 due to a slight cut in our earnings estimates and maintained its "buy" rating.
  The research house has recently hosted an environmental and public-private partnership (PPP) policy tour in Beijing, Nanjing and Changzhou, offering direct engagement with government officials and industry experts, and a series of visits to environmental projects.
  HSBC said capacity for WTE (waste to energy) remains short given 44% penetration
against waste treatment volume in China, versus 2020 target (>50%) and average in Europe
(>70%), and known limitations for landfill sites, against a growing intake of municipal
waste.
  Banks have seen an acceleration in loan approvals YTD and set up a "white list" for
qualified companies to improve lending efficiency and borrowing costs. HSBC said CEI remains its preferred pick, given clear capacity growth and a healthy balance sheet.
  It said the stock looks attractive at 8.6x 2019 PE or 13.6x on adjusted earnings after stripping out construction revenue (non-cash), with adjusted (cash-based) EPS at 23% CAGR for 2019-21 supported by ramp-up of operations.