[ET Net News Agency, 29 January 2020] Daiwa Research raised its target price for HK
Electric Investments (HKEI)(02638) to HK$8.35 from HK$7.35 and upgraded its rating to
"outperform" from "hold".
The research house expects HKEI to show its defensive investment nature during the
current outbreak of the Wuhan coronavirus. Daiwa expects HKEI to provide stable dividends
over 2019-21 with a 40bps yield gap expansion.
After the cut in SoC (Scheme of Control) return from 9.99% to 8% in 2019, Daiwa believes
HKEI's dividend will remain stable over 2019-21. It sees HKEI's earnings growth driven by
a 104% rise in capex during 2019-23 versus 2014-18. (KL)