[ET Net News Agency, 20 December 2019] Daiwa Research raised its target price for CLP
Holdings (00002) to HK$88 from HK$84 and upgraded its rating to "outperform" from "hold".
The research house said CLP's share price has declined by 8% year-to-date,
underperforming the HSI by 15% due to the sluggish performance of the Australian and Hong
Kong businesses.
Despite CLP suffering an impairment loss of HK$6-7bn on EnergyAustralia (EA) retail in
June 2019, Daiwa expects a recovery in its wholesale business from the resumption of
normal operations at Mt. Piper and Yallourn, and the supportive wholesale prices amid
unusually high summer temperatures in Australia.
Daiwa raised its 2020-21 EPS forecasts by 1% to adjust for the better performance of the
Australian business. (KL)