[ET Net News Agency, 19 February 2021] J.P. Morgan lifted its target price for China
Communications Construction (CCCC) (01800) to HK$5.1 from HK$4.3 and upgraded its rating
to "overweight" from "neutral" given the improving risk/reward.
The research house said CCCC's operational trends were weaker-than-peers during 2019-20
given its unfavorable business mix with higher contribution from BOT
(build-operate-transfer) type of investment projects and larger exposure to an uncertain
overseas environment, driving the underperformance in the past two years.
Looking ahead, JPM sees improving risk-reward for CCCC, expecting the BOT investment to
become a bright spot and rebound in earnings delivery. JPM lifted its NPAT forecasts for
FY2020-22 by an average of 1%. (KL)