[ET Net News Agency, 21 August 2019] J.P. Morgan lowered its target price for Hong Kong
& China Gas (HKCG)(00003) to HK$14.8 from HK$15.5 and maintained its "underweight" rating.
The research house said HKCG's 1H results missed its estimates by 10% due to
worse-than-expected revenues and margins from all three business units - HK gas, China gas
and New Energy segments.
The dollar margin at its China gas business fell 10% to Rmb0.55/m3, due to the inability
to pass through higher gas costs. Management gave bearish guidance for 2H amid an economic
slowdown in HK (due to protests) and Mainland China (due to trade tensions). It revised
down China volume guidance from mid-teens to >10% and guided to -1% volume growth for HK.
JPM cut its volume growth forecasts for the China business (from 13% to 11%) and the
Hong Kong business (from 0% to -1%). It also cut its 2019-21 EPS estimates by 20% to
factor in weaker operating earnings and a drop in property revaluation gains. (KL)
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00003 HK & CHINA GAS
Nominal 
5.940 +0.120 (+2.062%) Others
21/08/2019 16:22
{I-bank focus}JP Morgan lowers HK & China Gas to HK$14.8
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
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