Deutsche Bank


PUBLISHED : Sunday, 26 March, 2006, 12:00am
UPDATED : Sunday, 26 March, 2006, 12:00am


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About a year ago stronger-than-expected traffic growth for Beijing Capital Airport (BCIA) in the second half of 2004 led Deutsche Bank to increase its earnings forecast for 2004 and 2005 but, after a company visit, it had mixed feelings about prospects and maintained its 'hold' rating.

The broker's major concern was that BCIA's contribution to phase III expansion at the airport remained unresolved.

Deutsche Bank increased its earnings forecast for 2004 by 4 per cent to 727.77 million yuan and for 2005 by 5 per cent to 806.32 million yuan.The broker set a 12-month price target of $3 on the stock, up from $2.50. It said the main factor that could push the stock higher was a significant increase in airport fees but warned that a cost overrun of 1 billion yuan on the airport expansion could cut the target price by 9 per cent.

Last March the airport announced an 87.3 per cent rise in net profit to 749.35 million yuan. Turnover rose 38.5 per cent to 3.13 billion yuan.

The counter closed on Friday at $4.275.