[ET Net News Agency, 1 April 2020] Daiwa Research cut its target price for Beijing
Enterprises Water (BEW)(00371) to HK$3.45 from HK$4.7 and downgraded its rating to
"outperform" from "buy", noting potential earnings pressure this year.
The research house said BEW reported slightly lower-than-expected net profit for 2019.
Management gave rather conservative guidance for revenue growth for 2020 under the
unpromising macro environment and would continue to focus on its asset-light strategy to
alleviate the cash flow burden.
Daiwa cut its 2020-21 EPS forecasts by 15-18% after considering BEW's conservative
guidance for 2020. (KL)