UBS: Raising Target Price of Chinese Shenhua (01088.HK) to 29.6 Hong Kong Dollars, Dividend Exceeds Expectations.

According to the Wise Wealth APP, UBS released a research report stating that China Shenhua (01088.HK) exceeded expectations in terms of profit and dividends in the first half of the year, with a net profit decreasing by 15% year-on-year, which is in line with profit forecasts. This also implies that the company's second-quarter profit will decrease by 10% to 13.3 billion RMB; a interim dividend of 0.98 RMB will be paid, with a dividend payout ratio of 79%, higher than the guidance and last year's 76.5% level. The bank slightly raised its profit forecast for China Shenhua in the next two years by 3% and 7%, and increased its target price from 27.8 HKD to 29.6 HKD, maintaining a "sell" rating.