[ET Net News Agency, 31 March 2020] Credit Suisse lowered its target price for Beijing
Enterprises Water Group Limited (BEW)(00371) to HK$4.5 from HK$6.5 and maintained its
"outperform" rating.
The research house said BEW's FY2019 net profit of HK$4.9bn (up 10%) missed its 20%
guidance. The dividend per share grew 4% to HK$0.185.
At the analyst conference call, BEW reiterated its continuous focus on asset-light
transitioning and expected capex in FY2020 to be HK$12bn (versus HK$12.5bn in FY2019).
Management expects to increase the revenue contribution from operation rather than
construction.
Credit Suisse trimmed its FY2020-21 EPS forecasts by 19-25% due to slower construction
revenue assumptions, given the ongoing strategic transition. (KL)