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>> China Shenhua Energy
Morgan Stanley: price target on China Shenhua Energy is 58 hkd 11 December 2007
Morgan Stanley said in its note: "While China will likely see only a 10 pct coal price increase for 2008, we believe the upturn in the Chinese coal sector can last longer than the regional cycle as domestic prices will eventually converge to regional levels." Also analysts mentioned that the firm is strongly positioned to benefit from the next stage of the consolidation process in the Chinese coal industry: "Having shut down more than 5,000 small and unsafe mines over the last few years, the government will likely begin to encourage key coal companies like Shenhua to take over some of these mines and scale up their production levels." "At current levels, Shenhua is trading at a 2008 PE (price to earnings ratio) of 33 times, which we believe understates the growth potential of China's coal sector, where tightness in coal supply should continue into 2010," Morgan Stanley added. Current market capitalization of China Shenhua Energy is 167.7 billion hkd Current share price of China Shenhua Energy on the Hong Kong Stock Exchange: 49.35 hkd |
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