[ET Net News Agency, 12 August 2019] Daiwa Research lowered its target price for Value
Partners Group (00806) to HK$5 from HK$7.5 and maintained its "outperform" rating.
Value Partners is scheduled to announce its 1H19 results on 19 August. The research
house forecast a 30% rise in its earnings despite recent weak equities markets in Greater
China.
Daiwa said this growth was driven by co-investment returns, performance fees on a low
base, and resilient management fees, which was in turn supported by a rise in the average
fee rate.
Daiwa revised down its 2019-21 EPS forecasts by 18-59% due mainly to our lower
performance fee forecasts and mark-to-market lower investment income from seed investments
in its funds, leading to a lower sustainable ROE. (KL)