Bank of America Merrill Lynch downgraded CITIC SEC (06030.HK) -0.380 (-2.023%) Short selling $22.97M; Ratio 29.345% 's
investment rating from Buy to Neutral, with target price cut from $21.2
to $20.3. The broker said the market's expectation that the
Shanghai-Hong Kong Stock Connect will bring positive effect to the
company's long-term prospect should have reflected in its stock price.
The 2015e P/B is now standing at 1.7x, close to the historical high of
2x
CLSA lowers Beijing Ent Water (00371) to HK$6 CLSA cut its target price for Beijing Enterprises Water (BEW)(00371) by 8% to HK$6, and reiterated its "buy" rating. The research house said BEW's share price has dropped 14% in the last two trading days. First, the 2017 earnings results are below expectations. Second, management is guiding for 20-25% net profit growth for 2018, versus 30% in the past few years. Management now has a cautious approach to water PPP (public-private partnership) projects, which is not necessarily bad. CLSA cut its 2018-19 earnings forecasts by 19%. At the current level, it believes many of the negatives are already priced-in.
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