标题：Sanchuan Water MeterPenetration rate of smart meters rising slowly; more M&A likely
发布日期：2016-03-29 9:50:33
内容： Earnings forecast and valuation We trim 2016/17e EPS by 15.8%/18.4% to Rmb0.42/0.51. The stock now trades at 45.4x 2016e and 37.7x 2017e P/E. Given the heightened M&A expectation, we raise our TP by 21.9% to Rmb19.02 based on 45x 2016e P/E. As the share price has exceeded our TP after the recent strong run-up driven by its generous stock dividend (7-for-10 stock dividend and 8-for-10 stock distribution from the capital reserve), we downgrade Sanchuan to HOLD. Risks: downstream demand stays sluggish; business integration disappoints.
发布日期：2016-03-29 9:50:33
内容： Earnings forecast and valuation We trim 2016/17e EPS by 15.8%/18.4% to Rmb0.42/0.51. The stock now trades at 45.4x 2016e and 37.7x 2017e P/E. Given the heightened M&A expectation, we raise our TP by 21.9% to Rmb19.02 based on 45x 2016e P/E. As the share price has exceeded our TP after the recent strong run-up driven by its generous stock dividend (7-for-10 stock dividend and 8-for-10 stock distribution from the capital reserve), we downgrade Sanchuan to HOLD. Risks: downstream demand stays sluggish; business integration disappoints.
