Kstar:Adjusted target price on stock dividend
EPS revision on stock dividend.
Valuation and risks To factor in a 30% stock dividend, we revise our 2017/2018E EPS by 30% for each. Accordingly, we trim our target price from RMB24 to RMB16.4.
Valuation and risks.
Our new target price is still based on 30x 2017E P/E, or 1.0x PEG (vs. regional peers’ 20-30x P/E, or 1.0x PEG). Risk: weaker-than-expected China UPS demand, price competition, weaker EV proliferation.