FIH (02038.HK) +0.090 (+2.233%) Short selling $6.72M; Ratio 5.342% issued a positive profit alert, expecting to record a substantial increase of 80% to 100% in net profit compared with 2013 (US$77.28 million). The increase was mainly due to the corresponding continuous enhancement of the group’s yield and operation efficiency; control of the cost of sales and general and administrative expenses; and optimisation of the research and development resources.
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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