Quote | Super Quote
Super Quote   |   Detail Quote   |   Interactive Chart   |   Real-Time Chart   |   Transaction   |   Related News   |   Related Securities   |   Company Information   |   Dividend Records   |   Short Sell
RTNominal down0.770 -0.050 (-6.098%)
Research Report

04/10/2019 18:01

{I-bank focus}Morgan cuts Dongzheng AFC (02718) to HK$1.49

[ET Net News Agency, 4 October 2019] Morgan Stanley lowered its target price for
Shanghai Dongzheng Automotive Finance (02718) to HK$1.49 from HK$4.44 and maintained its
"overweight" rating.
The research house expects Dongzheng's earnings growth to recover to 38% in 2020. It
expects Dognzheng to continue to replace high-cost existing debt with new funding at a
lower cost, which would result in a lower funding cost and RoA (Return on assets)
improvement to 3.9% in 2020, up 0.3ppt. Retail loan growth should recover given potential
recovery of auto sales in Zhengtong and improved loan sourcing from external dealers.
As its negative 1H results reset the loan growth outlook, management announced an
interim dividend of HK$0.08 per share, which implies a 7.6% interim dividend yield or 85%
payout ratio.
Morgan said it could be a rational move to optimize capital efficiency given its 1H CAR
ratio stood as high as 42%. The ex-dividend date is 24 October and could be a near-term
catalyst. (KL)

Remark: Real time quote last updated: 28/02/2020 14:11
  Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service
A Member of HKET Holdings
Customer Service Hotline:(852) 2880 7004     Customer Service Email:cs@etnet.com.hk
Copyright 2020 ET Net Limited. http://www.etnet.com.hk ET Net Limited, HKEx Information Services Limited, its Holding Companies and/or any Subsidiaries of such holding companies, and Third Party Information Providers endeavour to ensure the availability, completeness, timeliness, accuracy and reliability of the information provided but do not guarantee its availability, completeness, timeliness, accuracy or reliability and accept no liability (whether in tort or contract or otherwise) any loss or damage arising directly or indirectly from any inaccuracies, interruption, incompleteness, delay, omissions, or any decision made or action taken by you or any third party in reliance upon the information provided. The quotes, charts, commentaries and buy/sell ratings on this website should be used as references only with your own discretion. ET Net Limited is not soliciting any subscriber or site visitor to execute any trade. Any trades executed following the commentaries and buy/sell ratings on this website are taken at your own risk for your own account.