[ET Net News Agency, 26 March 2020] Huatai Research raised its target price for China
Conch Venture (00586) to HK$39.9 from HK$35.2 and maintained its "buy" rating.
The research house said Conch Venture reported in-line 2019 results. Both of the two
major segments, industrial solid waste and hazardous waste (ISW & HW) and waste-to-energy
(WTE), delivered a solid performance, accounting for 38% and 65% of the company's gross
profit increase.
Despite two consecutive years of sound growth, the balance sheet remains strong with a
gearing ratio still low at 7.1%. Huatai raised its 2020/21 core net profit forecasts by
1.0/9.3%. It believes that Conch Venture is on track to reach its target of 18mtpa of WTE
capacity by 2023. (KL)