[ET Net News Agency, 9 April 2020] Daiwa Research cut its target price for China Gas
(CGHL)(00384) to HK$23.5 from HK$25 and downgraded its rating to "underperform" from
"hold".
The research house cited CGHL management from a conference call noting a slowdown in gas
sales volume, connections and VAS in 1Q due to the COVID-19 outbreak in China. As such,
Daiwa cut its FY2020 EPS forecast by 3%.
It added that the downgrade reflects likely weak FY2020 results and a lack of catalyst
as gas sales recovery momentum remained slow at end-March/early April due to the spread of
COVID-19 to overseas countries, hurting the export-focused industries. (KL)