Morgan Stanley Boosts Price Target for SEAZEN (01030) to HK$3.17, Citing Debt Reduction from Financing Moves

Stock News
03/04

Morgan Stanley has released a research report indicating that SEAZEN (01030) has recently undertaken several financing activities. These include a US dollar bond issuance in February and a share placement. The company has also submitted an application to the China Securities Regulatory Commission for a public REITs offering, aiming to divest its undervalued shopping mall assets. The report believes these initiatives by the group will lower its total borrowings, thereby reducing interest expenses. By enhancing cash flow, the measures are expected to significantly decrease the company's liquidity risk. Morgan Stanley has updated its risk and return analysis for the company, raising its earnings per share forecasts for the current and next fiscal years by 10% and 14%, respectively. Concurrently, the weighted average cost of capital has been lowered from 10.7% to 10.4% to reflect the reduced risk profile. The price target has been increased from HK$2.77 to HK$3.17, with an "Overweight" rating maintained.

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