[ET Net News Agency, 5 August 2020] Nomura lowered its target price for HK Electric
Investments (HKEI)(02638) to HK$8.2 from HK$8.7 on COVID-19 concerns and maintained its
"neutral" rating.
With highly predictable cash flows and dividends purely based on the mature HK
electricity market, HKEI has been particularly resilient against the recent global stock
market turmoil, the research house said.
Nevertheless, Nomura believes HKEI has ample room to maintain its DPS of HK32 cents due
to lower financing expenses. It revised its FY2020 EPS forecast to 23.42c from 29.82c, due
to less-than-expected earnings impact from the third wave of COVID-19. (KL)