Upgrades and downgrades
BUY
Anhui Conch Cement Core Pacific-Yamaichi has maintained a 'buy' rating on the stock. The brokerage said the cement maker's sales volume soared 85 per cent during the first half of this year to 11 million tonnes due to an increase in production capacity of more than 90 per cent. Analyst Le Yukun said Anhui Conch's full-year sales would see year-on-year growth of 77 per cent. The analyst's target price is $6.10 based on the stock trading on 17.5 times this year's expected earnings. The counter closed yesterday at $5.90.
HOLD
Beijing Capital Airport ING Financial Markets has downgraded to a 'hold' its rating on the counter given the firm's heavy capital expenditure and the unlikelihood of a rise in airport fees in coming years. Analysts Philip Wickham and Belinda Chan said interim results were lower than expected, and the brokerage's estimates had been lowered, mainly to account for higher operating and financial costs in the first half of the year. 'Our earnings estimates for the airport have been lowered by 1 per cent through to 2003-05,' the analysts said. They have set a new target price of $2.30. The stock closed yesterday at $2.225.
BUY
Wing Lung Bank DBS Vickers Securities has upgraded its rating for Wing Lung Bank to a 'buy' as the brokerage said it was one of the few local banks to report a resilient first-half performance with 1.5 per cent growth in earnings. Analyst Tony Liu said: 'Interest margin contraction was offset by a surprisingly firm loan book and robust non-interest income growth'. He said that as Wing Lung started to gain recognition from the market for its low business risk, solid fundamentals and merger and acquisition speculation, he expected further upside for the stock. Mr Liu said that despite its recent strength, Wing Lung traded at a below average valuation. He raised his target price to $38. The counter closed yesterday at $34.80.
