[ET Net News Agency, 19 February 2021] J.P. Morgan lowered its target price for China
Railway Construction (CRCC) (01186) to HK$6 from HK$7 and maintained its "overweight"
rating.
The research house said CRCC saw solid order flow during 2019-2020, though earnings
delivery in part of 2020 was impacted due to its higher exposure to overseas and PPP
(public-private partnership) projects, particularly relative to the closest peer, China
Railway Group (00390).
Looking ahead, JPM sees balanced fundamental drivers, while seeing the H share more
attractively valued than the A share. JPM cut its NPAT forecasts for FY2020-22 by an
average of 6%. (KL)