[ET Net News Agency, 27 July 2020] Daiwa Research lowered its target price for Hong
Kong & China Gas (HKCG)(00003) to HK$10.6 from HK$13.71 and downgraded its rating to
"underperform" from "hold" on a dimmer outlook.
The research house believes HKCG will continue to see weak HK towngas sales in 2H,
despite a low base in 2H 2019 amid the social unrest last year. Daiwa said the third wave
of COVID-19 has delayed the expected towngas volume recovery.
Daiwa added that its best dividend potential assumption for HKCG is just to maintain its
1-for-20 bonus share plan in 2021, under a prolonged challenging business environment.
(KL)