[ET Net News Agency, 28 April 2020] Credit Suisse lowered its target price for China
Shenhua Energy (01088) to HK$18 from HK$19 and maintained its "outperform" rating.
The research house said China Shenhua's 1Q earnings decline was mainly due to (1)
decrease in selling price and volume sales of coal, power and coal chemical products,
impacted by COVID-19, and (2) a higher base in 1Q 2019 for the recognition of one-off
investment income of Rmb1.1bn.
The company's 1Q coal ASP fell 0.5% to Rmb409/t, lower than the market's decline of 7%.
Credit Suisse slightly revised down its 2020-22 earnings by 9% to reflect lower coal price
assumptions. (KL)