[ET Net News Agency, 26 August 2019] Citi Research lowered its target price for China
Resources Gas (CRG)(01193) to HK$46 from HK$46.5 and maintained its "buy" rating.
The research house said CRG's net profit of HK$2,928m in 1H was less than market
expectations. Citi said CRG is financially sound for expansions with positive FCF and
HK$2bn (or HK$0.93/share) net cash.
Citi trimmed its 2019-21 net profits forecasts by 1-4% for dollar margin cut. It likes
CRG for decent 14.5% 2019-21 EPS CAGR, low investment risk focusing on core gas
distribution business, and sound financial position & cashflow for M&As. (KL)