[ET Net News Agency, 26 August 2019] Goldman Sachs raised its target price for China
Resources Gas (CRG)(01193) by 4% to HK$37.8 and maintained its "sell" rating.
The research house said CRG's 1H NPAT of HK$2,928mn was 5% ahead of Goldman's estimate
on better than expected connections.
Goldman said CRG invested less than Rmb$100mn in city gas project acquisitions (only a
fraction of peers ENN & China Gas). However, CRG is now in the process of acquiring a
large project in Ningbo (0.8bcm/year) that may assist in growing 2H volume (likely to
complete in 2-3 month).
Goldman incorporated the latest Rmb FX forecast (USDCNY 7.05 for 2H) and the latest
company data, accordingly, its 2019-21 EPS forecasts increased by 1%. (KL)