The latest Centa-City Leading Index (CCL) gained 0.05% weekly to 129.44 pts, marking nine-week high. Mass Centa-City Leading Index (CCL Mass) was 130.78 pts, up 0.24% from a week earlier, hitting 17-week high. Centa-City Leading Index (small/medium units) was 129.02 pts, representing a week on week increase of 0.14%, the highest over the past 17 weeks. Centa-City Leading Index (large units) was 131.73 pts, representing a week on week decrease of 0.45%. Wong Leung Sing, senior associate director at research department of Centaline Property, said that CCL Mass, Centa-City Leading Index (small/medium units) and CCL saw a four-week rise, with a cumulative gain of 1.22%, 1.11% and 0.83% over the past four weeks. Since CCL Mass and CCL (small/medium units) have already breached above the near-term high level over the past three weeks and continued higher, the home prices are likely to test the high level at 135 pts.
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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