[ET Net News Agency, 3 September 2019] HSBC Global Research lowered its target price
for Beijing Enterprises (BEH)(00392) to HK$45 from HK$52 and maintained its "buy" rating.
The research house calculated that BEH's 1H recurring earnings growth of 11%, meeting
HSBC's expectations. DPS surprised on the upside at HK$0.4 cents (up 25%), implying a
payout of 11% (1H 2018: 9%).
However, BEH expects some margin pressure in 2H. HSBC said BEH is currently trading at
6x PE for 2019 or 4x PE for its gas business alone, versus peers' 10x-17x. It revised down
its earnings estimates by 4-6% for 2019-21 based on lower gas sales volume assumptions.
(KL)