[ET Net News Agency, 17 April 2020] UBS Global Research lowered its target price for
China Gas Holdings (00384) to HK$38.5 from HK$44 and maintained its "buy" rating on
potential demand recovery and attractive valuations.
The research house cut its 2020-22 EPS estimates China Gas by 14%/9%/7% to factor in
weaker demand due to slower economic activity amid COVID-19. It estimated 2020-22 earnings
CAGRs of 25% for China Gas.
UBS estimated China Gas's earnings CAGR will be higher than its peers due to the
benefits of Russian gas, coal-to-gas conversions, and its fast-growing value-added
business. It estimated a positive FCF of HK$1.9bn in FY2021 for China Gas. (KL)