Chinese CoalACTIONMaintain UNDERWEIGHT, given no sign of industry recovery in the medium term due to
severe oversupply and the Chinese economy shifting from infrastructure-driven to
services- driven.
We prefer China Shenhua, which will focus on the power segment over the next few years with fast capacity addition, “ultra-low-emission” technology innovation and
qualification to operate nuclear power plants. The company is trading at an attractive 0.7x 2016F P/B. Maintain BUY with a DCF-based target price of HK$22.90.
Source: UOBKH
https://research.uobkayhian.com/content ... 829e492b8d
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