[ET Net News Agency, 23 August 2019] Morgan Stanley lowered its target price for China
Traditional Chinese Medicine (CTCM)(00570) to HK$4.5 from HK$5.5 but upgraded its rating
to "overweight" from "equal-weight".
The research house noted a significant disconnect between CTCM's earnings performance
and growth prospects and its stock performance. It thinks the market should correct this
misperception in the next 12 months, with re-rating to 10x 2020 P/E from 7x.
Morgan said the stock is down 27% year-to-date (versus +1% for the Hang Seng Index).
Based on 2020 consensus EPS, P/E is just 7x, despite revenue and net profit growing 27%
and 13% in 1H. Morgan expects 2020 P/E to re-rate from 7x now to 10x in 12 months, given
its earnings CAGR estimate of 20.5% (2018-21). (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00570 TRAD CHI MED
Nominal 
4.310 0.000 (0.000%) Others
23/08/2019 10:46
{I-bank focus}Morgan upgrades Trad Chi Med to "overweight"
| Remark: | Real time quote last updated: 19/04/2024 07:49 |
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