[ET Net News Agency, 12 June 2020] Nomura raised its target price for China Gas
Holdings (CGH)(00384) to HK$33 from HK$31 and maintained its "buy" rating.
The research house raised its 2020/21 earnings forecasts by 2%/2% on better dollar
margin assumptions. Nomura expects CGH's gas sales volume to improve from April 2020, with
mild dollar margin expansion.
Management guided that gas volume growth improved to 8-9% in April and +10% in May, from
-12% in March.
Nomura said its recent industry conversation indicates a high probability of PetroChina
(00857) raising its citygate gas price by only 3% in 3Q 2020 and even lowering its
off-contract gas price by 10% for the upcoming winter to stimulate gas consumption in the
current weak environment. (KL)