[ET Net News Agency, 13 August 2019] Credit Suisse lowered its target price for China
Shenhua Energy (01088) to HK$20 from HK$21 and maintained its "outperform" rating.
The research house said China Shenhua's 1H preliminary net income of Rmb24.2bn (down
1%), implying 2Q earnings of Rmb11.3bn, down 8%. It said that the company earnings are
almost immune to coal price downside pressure. With production loosening in major coal
production hub, soft demand and high inventory levels at major power plants, Credit Suisse
expects coal price to surprise the market on the downside.
Credit Suisse tweaked 2020 earnings forecast down 4.9% and introduced 2021 net profit of
Rmb39bn. (KL)