[ET Net News Agency, 21 September 2020] Goldman Sachs raised its target price for China
Railway Group (CRG)(00390) to HK$5.4 from HK$5 and maintained its "buy" rating.
The research house said CRG fared the best by delivering double-digit revenue growth of
15% in 1H while other companies posted single-digit revenue.
In the analyst call, CRG commented that they are expanding the overseas business to
catch up with their E&C peers. In CRG's plan, the overseas business could contribute 20%
of total revenue and 10% of CRG's overall profit by the end of the 14th Five-Year-Plan
Period (i.e. 2025).
Post results, Goldman revised its 2020-22 EPS by -4%/-7%/-15%. (KL)