[ET Net News Agency, 30 August 2019] UBS Global Research lifted its target price for
CLP Holdings (00002) to HK$100 from HK$93 and upgraded its rating to "buy" from "neutral".
The research house raised its 2020-22 earnings forecasts 1-3%. UBS believes 2019 will
mark the earnings trough for CLP, but growth would resume in 2020, delivering a 6% 2019-22
EPS CAGR.
This is based on its expectations for 4% average net fixed assets growth in Hong Kong,
power plants resuming normal operations in 4Q after unplanned outages in Australia, and a
solid plan to double the business over three to five years in India.
UBS believes investors have yet to price in the recovery of CLP's overseas businesses.
It expects low interest rates and a weak renminbi to support the share price. UBS forecast
a 4% 2019-22 profit CAGR for the Hong Kong business. (KL)