[ET Net News Agency, 1 April 2020] Daiwa Research lifted its target price for China
Resources Gas (CRG)(01193) to HK$40.5 from HK$39.5 and upgraded its rating to "hold" from
"underperform", given an unexciting outlook mapped by management during the analyst
briefing.
The research house believes Ningbo should be able to contribute to CRG's earnings
starting from 3Q, and Tianjin should be able to break even with a cheaper LNG (liquefied
natural gas), so CRG should be able to achieve a low single-digit earnings growth in 2020
under the current conservative guidance on organic-gas sales and residential connections.
Daiwa raised its 2020-22 EPS forecasts by 2-4%. (KL)