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Vía All News on ‘The Twitter Times: Muzaffar69/corpgov’ http://reut.rs/2vQPJOn
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Vía All News on ‘The Twitter Times: Muzaffar69/corpgov’ http://reut.rs/2vQPJOn
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Brokerage CIMB has lifted its price target on Hong Kong’s Cheung Kong Property Holdings (1113.HK) by 9% after the acquisition of Australian utility DUET.
The acquisition of a 40% stake in Duet, combined with other previous acquisitions like aircraft leasing, could lift recurring income from HKD8.6 billion in 2016 to between HKD10 billion to HKD12 billion for the 2017 to 2019 financial years. CIMB, which has an add rating on the stock, expects dividends to rise in the 2017 to 2019 financial years as recurring income increases.
Cheung Kong Property’s share price has been supported by a buyback. The company has bought HKD5 billion of stock year-to-date, which accounts for around a third of daily trading volume. CIMB expects the share buyback to continue. Here’s why the price target was lifted from HKD60 a share:
We revise up our FY17-19F core profit by 4.5-9.8% after factoring in Duet’s contribution and the share buyback YTD. We raise our TP to HK$66 with a narrower discount to NAV of 40% (45% previously) to reflect the better sentiment in the Central office market. CKP is currently trading at a 48% discount to NAV, which is attractive, in our view.
Barron’s Isabella Zhong earlier this month wrote a bullish story on the stock. For details please read CK Property: 3 Reasons to Buy This Blue Chip Now. The stock is up 24% over the past year.
May 16, 2017 at 02:25PM
from Robert Guy
Credit Suisse has turned bullish on Chinese power producers amid talk of consolidation of the Middle Kingdom’s state-owned enterprises.
Reports that the Chinese government wants to combine eight power SOEs into three larger groups would improve the profitability of some of the country’s biggest electricity producers. Credit Suisse reckons it could lead to a 3% increase in tariffs. Here’s the broker’s take on the situation:
Our deep-dive location analysis suggests that combining the major power groups could lead to market share concentration and result in more rational pricing behaviour in the liberalising power market.
The Hong Kong-listed shares of Datang International Power Generation (991.HK) and Huadian Power International (1071.HK) were the big winners, with Credit Suisse lifting both stocks to outperform from underperform.
Datang could benefit from lessened competition in the provinces of Hebei and Inner Mongolia. The broker doubled its price target to HKD3.40 a share from HKD1.70 a share, implying around 27% upside. Datang is their top pick among independent power producers.
We expect DTP to benefit from potential industry restructuring and its improving power utilisation despite coal cost pressure. With a meaningful ROE turnaround, we expect the P/B-based multiple to rerate.
Huadian‘s target price was lifted to HKD4.20 a share from HKD2.40 a share, with Credit Suisse seeing the potential for lessened competition in the province of Shandong. Here’s the broker in their own words:
Despite possible earnings pressure from higher coal cost in 2016, we expect HDP to see a meaningful ROE turnaround in 2017-18, helped by possibly less competition with industry consolidation, as well as normalising coal prices. Trading at 0.7x FY18E P/B (one of the cheapest among peers), we expect its P/B-based multiple to rerate.
Datang shares are up 43% over the past year, while Huadian is down 1.3% over the past year.
May 16, 2017 at 02:25PM
from Robert Guy
Following the launch last week of OpenFin’s Community Edition, RSRCHXchange, the MiFID II research solution and marketplace, is pleased to announce that they are the first partner to join the OpenFin Community.
RSRCHXchange is now developing its RSRCHX application on OpenFin, the world’s first common operating layer for financial desktop applications, which provides the connectivity and interoperability that will significantly enhance the user experience for RSRCHX clients.
The RSRCHX application gives the option of moving away from web browsers to the desktop, allowing users to access the RSRCHX portal in a next generation segregated desktop application. By developing on OpenFin, RSRCHXchange is enabling both asset management firms and research providers to use its unique live consumption analytics, real-time research assessment tools and research marketplace in conjunction with other best-in-breed solutions to meet their MiFID II and research needs.
OpenFin’s common operating layer is licensed on over 125,000 desktops by 35 of the world’s largest banks and trading platforms. The new OpenFin Community Edition provides free access to the operating layer, making the platform more accessible to the entire ecosystem of capital markets applications.
Vicky Sanders, Co-Founder, RSRCHXchange, commented: “Building the RSRCHX desktop application on OpenFin goes beyond simply improving the user experience of our research platform; with the industry facing a sprint in order to be ready in time for MiFID II implementation in January next year, it’s connectivity which will allow the industry to join the dots, linking together multiple MiFID II solutions.”
Jeremy Davies, Co-Founder, RSRCHXchange, added: “Leveraging OpenFin in this way is one of several developments that we have been working on to build out our connectivity for our customers and providers. It keeps RSRCHXchange at the forefront of financial technology innovation and we look forward to announcing other product upgrades and partnerships with more best-in-class providers, which will further improve our offering.”
May 16, 2017 at 02:26PM
from Dylan Jones
Graeme de Bruyn retweeted:
#CSuite #corpgov Ethical ‘lapses’ driving more CEO departures ow.ly/TAml50buCpl
May 15, 2017 at 02:21PM
https://twitter.com/graemedebruyn/status/864047927639068672
from Graeme de Bruyn
#CSuite #corpgov Ethical ‘lapses’ driving more CEO departures https://t.co/eXqzPZUYqM
— BoardAgenda (@BoardAgenda) May 15, 2017