[ET Net News Agency, 24 April 2020] Daiwa Research raised its target price for China
Gas (CGHL)(00384) to HK$26 from HK$23.5 and upgraded its rating to "outperform" from
"hold".
CGHL yesterday announced the grant of 268.72m options. The research house said this is
the second overhang removal in two weeks following SK E&S's selloff during 16-17 April.
The third overhang in 3Q (ie, subsidy on rural gas projects) remains intact.
Daiwa believes the issuance of the share option motivates CGHL's employees to achieve
higher earnings. It raised its FY2022 EPS forecast by 1% due to higher VAS profit. (KL)