Webdisclosure.com

Search

EDISON INVESTMENT RESEARCH LIMITED Edison Investment Research Limited: Edison issues outlook on China Water Affairs Group (855)

Directive transparence : information réglementée

23/07/2020 17:56

Edison Investment Research Limited
Edison Investment Research Limited: Edison issues outlook on China Water Affairs Group (855)

23-Jul-2020 / 16:56 GMT/BST


 

London, UK, 23 July 2020

Edison issues outlook on China Water Affairs Group (855)

In FY20, despite a very challenging operating environment, China Water Affairs (CWA) delivered another year of growth for shareholders. Requirements for environmental expenditure in the Chinese water sector present opportunities for it to extend its track record of growing returns into FY21 and beyond. This opportunity does not appear to be reflected in CWA's current modest market rating of an FY21e P/E multiple of 5.6x.

 

Despite the persistence of COVID-19 and political related uncertainty in Hong Kong, following the better than anticipated FY20 results, we have nudged up our FY21 EPS forecasts for CWA from HK$1.06 to HK$1.08, implying a P/E of c 5.6x. The market appears to be taking a cautious view of CWA's growth prospects with a PEG ratio of 0.6x. Applying a PEG ratio of 1.0x (peer group: 1.1x) would indicate a valuation of HK$9.5/share. Our revised DCF model (EBIT growth FY20-25 12% CAGR and WACC 10%) indicates a valuation of HK$7.9/share.  


Click here to view the full report.

 

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact Edison:

Graeme Moyse, +44 (0)20 3077 5700

industrials@edisongroup.com

 

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        https://www.linkedin.com/company/edison-investment-research

Twitter           www.twitter.com/Edison_Inv_Res

YouTube       www.youtube.com/edisonitv



Dissemination of a CORPORATE NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


End of Announcement - EQS News Service

1100791  23-Jul-2020 

fncls.ssp?fn=show_t_gif&application_id=1100791&application_name=news&site_id=symex