[ET Net News Agency, 16 December 2019] HSBC Global Research raised its target price for
Power Assets (PAH)(00006) to HK$56 from HK$55 and maintained its "hold" rating.
Despite a similar earnings exposure in the UK to CKI (01038), the research house expects
an earnings contraction in 2019 for PAH, due to power project expirations in Zhuhai,
mainland China, and a scheduled cut in permitted return for HK Electric (02638).
HSBC believes upside to the dividend is limited, because its FCF (free cash flow) of
HK$2.62/share for 2019 is below the research house's dividend expectation, although HSBC
still believes its net-cash positions should at least hold the dividend flat YoY. (KL)