Beijing Enterprises 0392

[winston]

DJ MARKET TALK: CLSA Raises Beijing Enterprises Target To HK$50

1126 [Dow Jones] STOCK CALL: CLSA raises Beijing Enterprises' (0392.HK) target to HK$50.00 from HK$48.00 after lifting forward NAV to HK$56.1/share from HK$53.6/share. Says, both of its gas distribution, transmission businesses reported above-forecast results. Adds, volume growth in both of the group's downstream and midstream business is strong with volume growth from downstream distribution business.

"The stock is cheap trading at a 27% discount to our forward NAV. The firm's increased focus and high management quality justify a premium valuation." Keeps Buy call.

Contact us in Hong Kong. 852 2802 7002; [email protected]

[winston]

Not vested.

DJ MARKET TALK: Beijing Ent +0.5%; Toll Cut Impact Small-CICC; Sep 29

1441 [Dow Jones] Beijing Enterprises (0392.HK) +0.5% at HK$41.70, modest rebound vs Monday's 2.6% fall and underperforming vs HSI's 2.2% gain, on concerns over earnings impact after company announced Sunday its 2 toll stations will cut their tolls by half with effect from Oct. 1, says Kenny Tang at Redford.

"I think the shares are reacting to the news, but this should only have a short-term impact, as its focus is on the gas and water businesses," says Tang.

CICC keeps stock at Accumulate, believes negative effect is slight to company's earnings, as tollroad business only contributed 2%, 5% to total revenue and net profit in 1H09, while its parent has agreed to compensate company for loss arising from drop in revenue.

Adds, gas, water businesses represented 74%, 9% of total profit in 1H09 and will grow quickly in coming years. Keeps earnings forecasts, unchanged target at HK$45.35.

Source: Dow Jones Newswire

[winston]

DJ MARKET TALK: HSBC Downgrades Beijing Enterprises To Neutral; Sep 17

1546 [Dow Jones] STOCK CALL: HSBC downgrades Beijing Enterprises (0392.HK) to Neutral from Overweight; says share price looks fully valued on high FY10 estimated PE of 16X vs peers' 11-28X.

But raises target price to HK$45.50 from HK$38 after revising up FY09, FY10, FY11 earnings forecasts by 6%, 5%, 5% respectively on higher gas sales, contribution from Yanjing Brewery.

Broker expects gas business to remain as key earnings driver, tips better margins from Brewery operation. But contribution from toll road business likely immaterial. Adds, improving profitability from water segment, another growth engine.

Source: Dow Jones Newswire

[winston]

Not vested.

DJ MARKET TALK: UOB Upgrades Beijing Enterprises Holdings To Buy

0932 [Dow Jones] STOCK CALL: UOB KayHian upgrades Beijing Enterprises Holdings (0392.HK) to Buy from Sell on expectation further further expansion of midstream gas transmission capacity, higher gas demand in Beijing city, continued improvement in beer business and potential asset injection to add value.

Raises target price to HK$57.00 from HK$39.00 after increasing 2010-11 earnings forecasts by 17%-22% to factor in 7% higher gas transmission volume growth for 2010-11, 2%-3% gas sales volume growth in Beijing city, 2% margin improvement for Yanjing Brewery.

"Since we initiated coverage on the city gas distribution sector in March 2009, BEH's share price has underperformed its peers Xinao Gas (2688.HK) and China Gas (0384.HK) by 100%-150%. Given its solid fundamentals, we think it is unjustifiable."

Source: Dow Jones Newswire

[winston]

Not vested

DJ MARKET TALK: Nomura Raises Beijing Enterprises Target 28.5%

1225 [Dow Jones] STOCK CALL: Nomura raises Beijing Enterprises (0392.HK) target to HK$60.90 from HK$47.40 after increasing FY09-11 EPS estimates by 3%-4% as natural gas division remains rock solid, water division continues to increase capacity through M&A.

Raises FY10 NAV estimate to HK$60.90 from HK$47.40, also increases EV/EBITDA multiple for brewery division to 13X from 10X, reflecting increase in Chinese brewery sector valuations.

Keeps at Buy on view stock offers high quality exposure to China gas distribution sector, stable return profile, attractive investment for long-term investors.

Tips catalysts from China's natural gas pricing reform, potential asset swap with parent in next 6-12 months.

Source: Dow Jones Newswire

[winston]

DJ MARKET TALK: BOA-ML Ups Beijing Enterprises Target To HK$64.70
january 15, 2010


1600 [Dow Jones] STOCK CALL: Bank of America-Merrill Lynch raises Beijing Enterprises (0392.HK) target to HK$64.70 from HK$60 after revising up FY10-FY11 earnings forecasts by 3%-4%.

"We expect the fast economic growth in Beijing/Bohai Rim, strong domestic consumption growth and continued restructuring to drive its share performance in 2010."

House reaffirms its bullish view on company on strong heating gas demand and Yanjing's 17% price hike.
Recommends stock as top pick in China conglomerate space. Keeps at Buy. Stock +4.0% at HK$58.05


Source: Dow Jones Newswire

[winston]

Not vested. From Dr. Check, The Standard HK

Now, let's return to stock picking and look at Beijing Enterprises (0392), which can be considered a defensive play. The group is involved in diverse businesses, including the distribution and sale of piped natural gas in the capital. It also makes and sells beer in Beijing and other mainland cities.

Transportation infrastructure investments by the firm include the Capital Airport Expressway and Shenzhen Shiguan Road and Bridge.

In utilities, it builds sewage and water treatment plants and distributes water.

It looks attractive at its closing price yesterday of HK$47.50.


http://www.thestandard.com.hk/news_deta ... 00507&fc=8

[winston]

Not vested.

DJ MARKET TALK: Citi Starts Beijing Enterprises At Buy, HK$58 Tgt

0915 [Dow Jones] STOCK CALL: Citi starts Beijing Enterprises (0392.HK) at Buy, with HK$58 target. Says firm's gas operations likely to be key driver of 20% earnings growth in 2010, fueled by pipeline capacity ramp up, expansion of city-coverage, alternative-energy projects.

Stock's valuation less demanding, attractive to long-term investors after recent sell-off on sector concerns. Stock trading at 19X FY10 estimated earnings.

With gas shortages likely to run into 2010-13, plus firm may be able to raise its LNG tariff by 10%, house expects Beijing Enterprises has room to improve ROE to 10%-12%. Stock ended at HK$47.90 Monday.


Source: Dow Jones Newswire

[winston]

Not vested.

HIGHLIGHTS

• Revenue for the first half of 2010 amounted to approximately HK$15.23 billion,
representing an increase of 31% over the corresponding period of last year.

• Profit attributable to shareholders of the Company for the first half of 2010 amounted
to HK$1.56 billion, representing an increase of 10.2% over the corresponding period of last year.

• Recurring net profit attributable to shareholders of the Company increased by 16.4%
to HK$1.55 billion.

• Basic earnings per share attributable to shareholders of the Company amounted to
HK$1.37.

• An interim cash dividend of HK25 cents per share is declared for the six months
ended 30 June 2010.

http://www.hkexnews.hk/listedco/listcon ... 831284.pdf

[winston]

Not vested. PE 26; EPS Growth 11% ?

DJ MARKET TALK: BJ Enterprises +1.5%; Gas Prices Hike Positive-DB

1408 [Dow Jones] Beijing Enterprises (0392.HK) +1.5% at HK$55.55 at interval vs HSI down 0.1%, likely lifted by news Beijing raises retail natural gas prices for non-household users effective Tuesday by CNY0.33/cubic meter.

''Deutsche Bank notes industrial, co-generation customers would receive higher-than-average tariff increase of CNY0.49/cm, CNY0.43/cm respectively; believes this is positive to BJE as future gas sales growth in Beijing would mainly be driven by gas consumption from industrial, co-generation customers.

House says higher-than-expected tariff increase in industrial, co-generation gas tariffs would "further support the long-term structural growth story" of BJE; keeps Buy call, HK$62 target.

Source: Dow Jones Newswire