[ET Net News Agency, 17 July 2020] Daiwa Research raised its target price for HK
Electric Investments (HKEI)(02638) to HK$8.3 from HK$7.4 and upgraded its to "outperform"
from "hold".
The research house expects HKEI to show its defensive investment nature during the
potential upcoming profit-taking caused by an escalating China-US relationship. Despite
the cut in SoC return from 9.99% to 8% in 2019, Daiwa believes HKEI's dividend will remain
stable at 4.1% over 2020-22.
It expects HKEI's earnings growth to be driven by a 104% rise in capex during 2019-23
versus 2014-18. Daiwa lifted its 2021-22 EPS by 1% as it has a HK$5bn USD note with a
coupon rate of 4.25% due for maturity in 2020, which management believes it can refinance
at a lower rate of 2.5%, but Daiwa sees a 25bps lower rate under an unlimited QE program.
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02638 HKELECTRIC-SS
Nominal 
4.560 -0.010 (-0.219%) Others
17/07/2020 10:11
{I-bank focus}Daiwa raises HK Electric-SS (02638) to HK$8.3
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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