by winston » Fri Aug 04, 2017 1:37 pm
not vested
<Research Report>Deutsche Downgrades CKH HOLDINGS (00001.HK) to Hold with Target Price $115
Deutsche Bank, in its report, said while CKH HOLDINGS (00001.HK)'s 1H17 NPAT was 1% below the broker's forecast, with EBIT 4% below the broker's forecasts.
Deutsche Bank said the group's 2H17 will be tougher, due to significant asset sale gains in 2H16, and, while the broker's forecasts imply a reasonably large lift in 2H17 EBIT (7.6% yearly), this remains 3% below consensus for FY17.
Furthermore, the stock is now trading near the broker's target price and growth harder to come by, the broker has downgraded CKH to Hold from Overweight with target price kept at $115.
Deutsche Bank is feeling less confident about CKH's growth outlook.
On one hand, ports throughput growth is structurally challenged and tariff pressure coming from new shipping alliances.
On the other hand, European telecom growth is slowing and competition risk escalating in both Italy and the UK.
Besides, China retail is taking more time than expected to recover, and sales cannibalisation by new stores may become more of an issue over time as its scale grows, and there is also difficulty in finding transformational acquisitions, due to its size and more stretched balance sheet.
Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"