[ET Net News Agency, 29 April 2020] Daiwa Research raised its target price for China
Gas (CGHL)(00384) to HK$27 from HK$26 but downgraded its rating to "hold" from
"outperform".
The research house said CGHL's share price has risen by 21% since the removal of two
overhangs - SK E&S' sell-off on 17 April, and a share option issue on 23 April. Daiwa sees
CGHL's valuation approaching 15x FY2021 PER, which has factored in a likely city-gate
tariff cut in May-June.
It noted that municipal governments might not have sufficient financial capability to
subsidise rural-gas projects, amid a weak economy caused by the global COVID-19 pandemic.
Hence, Daiwa expects there could be a further connection slowdown and subsidy delay for
rural-gas projects for the 2020-21 winter. (KL)
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00384 CHINA GAS HOLD
Nominal 
7.180 +0.180 (+2.571%) Research Report
29/04/2020 14:55
{I-bank focus}Daiwa raises China Gas (00384) to HK$27
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
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