[ET Net News Agency, 21 May 2020] Nomura initiated coverage on Beijing Enterprises
Water (BEW)(00371) with a "buy" rating and target price of HK$3.62.
The research house sees BEW as a defensive play, as it is the leader in China's sewage
treatment and water distribution industry. Although BEW is likely to maintain DPS flat at
HK$0.185 for FY2020, the current 380bps yield spread is still the widest in BEW's history
since 2012, as the Chinese 10-year treasuries are trading at 2.5%.
Nomura expects DPS growth of 5% each in FY2021 and FY2022.
Nomura believes astute implementation of asset-light strategy should result in
significant improvement in the cash flow conversion rate from lower working capital
requirements, and more sustainable bottom-line growth due to project diversification. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00371 BJ ENT WATER
Nominal 
1.950 +0.050 (+2.632%) Others
21/05/2020 11:40
{I-bank focus}Nomura starts BJ Enterprises Water at HK$3.62
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
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