SELL Beijing Capital Int Airport Closing price: $2.625 Target price: $2 Share price performance (%) 1wk: 3.66 3mths:7.07 1mth:2.77 1yr:36.01 Capital expenditure related to building the third passenger terminal by 2008 and anticipated 13 billion yuan expansion to 2016 will lead to negative cash flow until 2009, analyst Philip Wickham projects. The airport has high growth prospects in the medium term, but valuation is high relative to its historic trading range and other regional airports, he says. Target price has been cut to $2 from $2.30. He recommends 'sell' from 'hold'. ING Financial Markets HOLD Clear Media Closing price: $6.70 Target price: na Share price performance (%) 1wk: 1.47 3mths:32.62 1mth:31.37 1yr:67.5 The share price has gained strongly in the past two months on interest in consumer-related counters, narrowing the valuation gap to international peers, the brokerage says. With a price-earnings ratio of 40 times for fiscal 2003 and 30 times for fiscal 2004, ICEA expects the stock to drift sideways, and has lowered its recommendation to 'neutral' from 'buy'. However, the 'premium valuation is well-supported by its dominant market position', it adds. ICEA Securities Asia BUY Cheung Kong (Holdings) Closing price: $72.25 Target price: $82.50 Share price performance (%) 1wk: 6.77 3mths:12.01 1mth:17.47 1yr:41.66 Expectations of 15-20 per cent upside in residential property prices in the next 12 months and good upside from subsidiary Hutchison Whampoa, has led analyst Jeff Yau to revise up earnings estimates and raise his target price to $82.50 from $69.50. He has also lifted his estimate of income from treasury and finance due to the buoyant stock market and projects the net asset value will rise 15 per cent to $92.21 this year. The 'buy' recommendation is unchanged. South China Brokerage
