[ET Net News Agency, 24 July 2019] Nomura lowered its target price for China Resources
Gas (01193) to HK$36 from HK$39.1 and downgraded its rating to "neutral" from "buy".
The research house cut its 2019/20 earnings forecasts by 3%/5% since it lowered its
retail gas volume growth estimates to 14%/16% (from 19%/18%) for the two years to factor
in the weaker-than-expected gas consumption of commercial and industrial (C&I) clients due
to the macroeconomic slowdown.
Nomura said the downgrade implies the stock is fairly valued at 16x 2019 EPS after its
share price has risen by 24% and outperformed peers by 13% year-to-date. Nomura prefers
China Gas (00384) and ENN Energy (02688) in the gas distribution sector given their higher
core profit growth, and lower profit coming from gas sales, which suggests less impact
from macro headwinds. (KL)
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01193 CHINA RES GAS
Nominal 
24.700 -0.200 (-0.803%) Others
24/07/2019 10:04
[I-bank focus]Nomura downgrades China Resources Gas to HK$36
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