We raise our target price 0.8% and maintain our BUY rating for PC1 with 34.0% total return.
Weak Q1 results (revenue -23% YoY and NPAT -40% YoY) were due to a lack of contribution from real estate, which we expected. Q1 is also seasonally low. We therefore maintain our profit forecast for 2017 and for strong growth in 2018. A USD20.5 million private placement (17 million shares, ~18% dilution) will finance two more hydro power plants and M&A of an electrical equipment producer.