[ET Net News Agency, 3 September 2019] Goldman Sachs lowered its target price for China
Renaissance Holdings (CR)(01911) to HK$14.5 from HK$29.2 and downgraded its rating to
"neutral" from "buy".
The research house said CR's 1H results came below its expectations, mainly due to
weaker-than-expected financial advisory fee income amid the downcycle of the private
equity market in China. Goldman now expects a prolonged private equity downcycle given
China's economic growth slowdown and the increased macro uncertainty led by escalating
US-China trade tensions.
Consequently, it cut its 2019/20/21 adjusted NPAT forecasts by 32%/32%/25%. (KL)