[ET Net News Agency, 11 March 2020] Daiwa Research lowered its target price for Beijing
Enterprises (BEH)(00392) to HK$36 from HK$39 and maintained its "outperform" rating.
The research house said BEH's share price is down 10% year-to-date on concerns about a
contraction in gas demand in China due to COVID-19. Yet, Daiwa believes the correction is
overdone and sees BEH's 3.8% yield as attractive amid the low interest-rate environment.
It believes BEH's residential/power & heating focus in Beijing makes it resilient to a
plunge in commercial and industrial gas demand caused by the COVID-19 outbreak in China.
Daiwa cut its 2020-21 EPS forecasts by 2-6%. (KL)