[ET Net News Agency, 27 March 2020] Daiwa Research lowered its target price for Beijing
Enterprises (BEH)(00392) to HK$35 from HK$36 but upgraded its rating to "buy" from
"outperform".
The research house said BEH's share price has fallen by 19% in March due to the market
liquidity crunch likely caused by fund redemptions. Daiwa expects a near-term rebound of
overly-corrected names after the Fed offered unlimited QE to mitigate the impact from the
global COVID-19 pandemic.
Daiwa believes BEH's residential/power and 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 expects Verk's (oilfield in Russia, in which BEH owns a 20% stake) profit before
tax contribution to BEH to fall from 17% in 2019 to 9% in 2020. (KL)