Beijing Enterprises Holdings Ltd
00392: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$44.92 | Jlkhx | Smxqlxj |
Beijing Enterprises Is Undervalued With Attractive Risk/Reward
It appears fourth-quarter natural gas demand in Beijing is higher than anticipated and we lift our 2020 earnings estimate by 5% to HKD 7.6 billion for Beijing Enterprises, or BEH. We expect the positive momentum of strong gas sales to continue in the first quarter, driven by extreme weather conditions, but we note this trend is unusual. Our fair value estimate of HKD 48.50 per share is, thus, unchanged.