[ET Net News Agency, 9 July 2020] Morgan Stanley lowered its target price for China
Conch Venture Holdings (00586) to HK$45.22 from HK$47.85 and maintained its "overweight"
rating.
The research house said Conch Venture received 180kt of hazardous waste (HW) in 1H, up
75% from the 102kt recorded in 1H 2019. HW treatment volume accelerated to >40kt in June
from >30kt in both April and May, and 60kt in 1Q.
Normal solid waste delivered similar volume growth to close to 300kt in 1H versus 171kt
recorded in 1H 2019. It also accelerated to 75kt in June from 60kt in both April and May,
and 80kt in 1Q. The strong volume growth was driven by capacity ramping for the project
commissioned in 2019, despite the COVID-19 impact in February and March 2020.
Morgan forecast Conch Venture to report Rmb545m core earnings in 1H versus Rmb429m in 1H
2019. It trimmed its 2020-22 net profit forecasts by 1.4-2.1% to factor in the COVID-19
impact on the core business. (KL)