Morgan Stanley said in a report that BYD COMPANY (01211.HK) -4.550 (-8.434%) Short selling $243.09M; Ratio 34.900% 's net profit for the third quarter slid 26% yearly, or 92% quarterly, to RMB28.22 million, missing its and market estimates by 89% and 93%. Rating was downgraded from Equalweight to Underweight. Moreover, the company's earnings forecasts for 2014 and 2015 were cut by 54% and 7% respectively. Target price was slashed by 7% to $40 from $43 accordingly.
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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