China Everbright Limited 0165

Re: China Everbright Limited 0165

Postby winston » Tue Oct 19, 2010 12:38 pm

DJ MARKET TALK: China Everbright Down 1.6%;1H Profit Down 38% Y/Y
Aug 17, 2010

1053 [Dow Jones] China Everbright (0165.HK) down 1.6% at HK$17.60, after company posts 1H net profit down 38% on-year at HK$445 million, marking only 26% of FY10 net profit forecast based on Thomson Reuters.

Goldman Sachs says bottom-line marks 34% of its FY estimate due to weak earnings at Everbright Securities, but house expects higher 2H10 net income given potential gains on private equity investment exits.

"We believe direct investment exits will become a key driver for book value growth and share performance." Keeps at Neutral with HK$17.90 target.

Source: Dow Jones Newswire
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Re: China Everbright Limited 0165

Postby winston » Tue Oct 19, 2010 12:43 pm

DJ MARKET TALK: China Everbright +0.7%; CEB IPO Approval Flagged
Jul 27, 2010

1150 [Dow Jones] China Everbright (0165.HK) fails to breach Monday's intraday peak of HK$20.30, last +0.7% at HK$20.00, as news CSRC approved China Everbright Bank's A-share IPO plan flagged, despite positive impact from such listing:

( IPO on Aug 18 )

It will first give market-based valuation benchmark to reflect value of China Everbright's 5.3% (pre-IPO) stake in CEB, second, one-off gain for China Everbright likely.

Kim Eng estimates upon listing of CEB, China Everbright will book one-off disposal gain about HK$500 million, value of CEB stake can be truly reflected.

"We also expect China Everbright's discount to NAV to narrow," Kim Eng says.


Source: Dow Jones Newswire
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Re: China Everbright Limited 0165

Postby winston » Tue Dec 14, 2010 11:17 am

Not vested. From Phillips

Risk

The volatility of stock markets is larger than our expectation, which affects the investment gains of CEL.


Valuation


In all, CEL's profits and assets maintain stable increase with the relative investment strategies are going to be released in domestic market, the recent transaction of the shares of associates is useful for the Group to optimize its operating structure. Therefore, we still hold an optimistic view on CEL's performance in future.

According to sub-part valuation method, due to the large volatility of A Shares recently, we respectively give the P/B for CES, CEB and the Group's Hong Kong operations at 2.3x, 2x and 1.1x, estimate CEL's intrinsic value should be HK$28.35, we give 10% discount to its intrinsic value because of the large volatility of stock markets recently and get 12-month target price of CEL at HK$ 25.51, around 44% higher than its current price, equivalent to 28x P/E and 1.6x P/B in 2011 separately. We maintain CEL on Buy rating.

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