[ET Net News Agency, 13 August 2020] Daiwa Research lifted its target price for China
Resources Gas (CRG)(01193) to HK$41 from HK$40.5 and upgraded its rating to "outperform"
from "hold".
The research house said CRG's share price is down by 12% over the past 3 months, likely
due to weak 1H results (due 25 August) on the sluggish C&I (commercial & industrial) gas
sales volume and suspension of residential connections for its densely populated projects
in late-1Q amid COVID-19, despite a slight gas sales recovery in 2Q.
But Daiwa believes the likely weak 1H is reflected in the share price, and it foresees a
slight re-rating in 2H on the following catalysts: (1) connection pick-up, (2) Ningbo JV
completion, and (3) likelihood of Tianjin being profitable for 2020. (KL)