[ET Net News Agency, 6 December 2019] UBS Global Research lowered its target price for
MTR Corporation (00066) to HK$47.7 from HK$48.7 and maintained its "neutral" rating.
The research house noted that MTR announced a negative profit impact of HK$1.6bn (or
HK$0.25/share), or HK$320m/month, for July-November as a result of HK's social unrest.
UBS views this as within market expectations, and financially immaterial to MTR.
However, it expects the decline in underlying net profit to keep DPS growth at low single
digits for FY2019. UBS cut its profit estimate by 11% for FY2019 based on a six-month
impact (all of 2H 2019) from the unrest. (KL)