Beijing Enterprises 0392

[winston]

Not vested

DJ MARKET TALK: Beijing Enterprises +2.6%; Catch-Up Play - JPM

1448 [Dow Jones] Beijing Enterprises (0392.HK) +2.6% at HK$54.15, outperforming vs HSI's 0.3% fall, likely due to rotational interest on expectation company to benefit from cold weather in China during winter.

JPMorgan expects Beijing Enterprises to benefit from cold winter this year, as heat users/residential users account for over 60% of natural gas consumption in Beijing.

Says, stock has underperformed peers by 10%-35% over past 3 months, now trading at 17X FY11 P/E. "As such, we see Beijing Enterprises as a potential catch-up play as the market becomes more aware of the positive catalysts aforementioned." Keeps at Overweight, HK$67.40 target.

Source: Dow Jones Newswire

[winston]

Not vested

DJ MARKET TALK: GS Resumes Beijing Enterprises At Conviction Buy
Dec 3, 2010

1513 [Dow Jones] STOCK CALL: Goldman Sachs resumes coverage on Beijing Enterprises (0392.HK) with Conviction Buy.

House believes company well positioned to benefit from robust natural gas demand growth in China, while it has well timed, rising exposure to water treatment. Adds, brewery business should benefit from ongoing market consolidation.

"We believe the company offers growth from both clean energy and a domestic consumption upgrade," says GS. Tips company to achieve earnings CAGR of 21% during 2009-2012.

Notes stock is trading at 30% discount to 2011 NAV, which house discounts by 10% to arrive at HK$62.70 target.


Source: Dow Jones Newswire

[winston]

Not vested.

DJ MARKET TALK: Beijing Enterprises Off 4.5%; US$116 Placement

1516 [Dow Jones] Beijing Enterprises Holdings (0392.HK) down 4.5% at HK$48.00 as an institutional shareholder is selling up to US$116 million worth of shares in a placement, according to a term sheet seen by Dow Jones Newswires.

The shareholder is selling 18.5 million shares in an indicative range of HK$48.70-HK$49.10 each, representing a 3%-4% discount to Beijing Enterprises' midday share price of HK$50.70.

"The placement, if it's confirmed, makes sense to me given ample liquidity in the market," says Peter Lai, a director at DBS Vickers. But Lai says he remains neutral on the stock as utility stocks are not expected to outperform the broader market in the medium-term.


Source: Dow Jones Newswire

[winston]

not vested

Valuation/Recommendation

• Maintain HOLD with a target price of HK$46.00. We believe BHEL is
worth holding given the defensive nature of its businesses, which will not
be affected by the uncertain economic conditions.

Maintain HOLD but we lift our target price to HK$46.00 from HK$43.00 based on our revised earnings.

Our fair valuation, representing 15.6x 2012F PE, is on a par
with industry PE of city gas distributors.

Source: UOBKH

[winston]

not vested

<Research Report>BEIJING ENT (00392.HK) rated Buy with TP lifted to $57.3 by Citi
Dec 3, 2012

Citigroup is optimistic that BEIJING ENT (00392.HK) will be benefited by the gas volume growth at Beijing's gas-fired power plant. It also believes BEIJING ENT is not affected by gas connection fee.

BEIJING ENT was maintained Buy with target lifted to $57.3 from $56.5.

Source: AAStocks Financial News

[winston]

<Research Report>BEIJING ENT (00392.HK) rated Buy with TP lifted to $65 by Deutsche
Nov 27, 2012

BEIJING ENT (00392.HK)'s spot price has yet to fully reflect its operational potential despite jumping 22% in the past six months and outperforming Hang Seng China Enterprises Index by 9%, said Deutsche Bank, who believes the present price remains attractive on high visibility of business growth and improved return on asset.

BEIJING ENT was maintained Buy with target lifted to $65 from $60.


Source: AAStocks Financial News

[winston]

<Research Report>BEIJING ENT (00392.HK) downgraded to In-Line with TP lifted to $55 by Stanchart
23, Nov, 2012

BEIJING ENT (00392.HK) targets to boost natural gas to 15 billion - 18 billion cubic meters in 2015 while Standard Charted expects the former to record natural gas sales of 13 billion cubic meters in the very same year.

BEIJING ENT was slightly lifted to $55 from $54. However, as Standard Chartered deems it is hard for the stock to soar after gaining 17% in May, it downgraded BEIJING ENT to In-Line from Outperform.

Source: AAStocks Financial News

[winston]

not vested

CGC reduces stake in BEIJING ENT (00392.HK) to 4.77%

The Capital Group Companies(CGC), a US-based fund company, reduced stake in BEIJING ENT (00392.HK) by nearly 6.4 million shares in January 21 after selling down stake in early January, cashing in nearly $329 million and taking its stake down to 4.77%.

Source: AAStocks Financial News

[winston]

BEIJING ENT (00392.HK) rated Neutral, TP hiked to $60 by GS
2013-06-14

Goldman Sachs noted in a report that the Beijing municipal government plans to launch a program converting 10,000 vehicles to use natural gas for electricity generation this year, so it is estimated that BEIJING ENT (00392.HK) will need natural gas of 260 million cubic meters yearly to support the huge demand.

In addition, due to competition of other gas pipelines, the broker cut the sales forecasts of pipe gas for 2013/14/15 from 15%/16%/14% to 5%/13%/14%. However, Goldman Sacks believed the depreciation of the pipeline business will offset the negative effects.

The broker upgraded the net profit forecasts of BEIJING ENT for 2013/14/15 by 13.1%/11.6%/7.3% to reflect the increasing contribution of vehicle gas business and the changes of depreciation standards.

It is estimated that the compound average annual growth rate of earnings arsing from the company's gas business in 2013-2015 will reach 21%.

The stock's target price was raised from $55 to $60 with a Neutral rating.


Source: AAStocks Financial News

[winston]

not vested

BEIJING ENT (00392.HK) controlling shareholder intends to issue $4.31B in bonds
2014-06-11

BEIJING ENT (00392.HK) -3.500 (4.636%) Short selling $20.79M; Ratio 13.762% announced that BE Group BVI, the controlling shareholder of the Company, and Shine Power International Limited, a wholly owned subsidiary of BE Group BVI, as the issuer entered into an agreement with the Joint Lead Managers, namely Citigroup Global Markets Ltd, Credit Suisse (Hong Kong) Limited, Deutsche Bank AG, Hong Kong Branch, The Hongkong and Shanghai Banking Corporation Limited and UBS AG Hong Kong Branch, pursuant to which Shine Power International Limited agreed to issue, and the Joint Lead Managers agreed, severally and not jointly, to subscribe or to procure subscribers to subscribe for bonds in a total principal amount of HK$4,312,000,000.

The bonds are exchangeable at the option into existing shares of the Company at the initial exchange price of HK$107.80 per share.

Source: AAStocks Financial News