[ET Net News Agency, 14 September 2017] UBS Global Research raised its target price for
Hong Kong & China Gas (HKCG)(00003) to HK$13.5 from HK$13, and maintained its "sell"
rating.
The research house said it likes HKCG's Hong Kong core gas business and China gas
utilities business, but it thinks subsidiary ECO Environmental Investments might struggle
in a weak commodity price environment.
While a better-than-expected regulatory outcome regarding gas distributors' returns has
eased the risks on its China gas utilities business, UBS thinks valuation appears
stretched.
The research house said the National Development and Reform Commission's decision on
permitted returns for gas distributors was better than expected. UBS also believes
recently announced policy directives should support strong gas demand in China. However,
return on ECO has remained weak at only 2% 2015-16 average ROIC. (KL)
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00003 HK & CHINA GAS
Nominal 
6.360 -0.050 (-0.780%) Others
14/09/2017 15:05
[I-bank focus]UBS lifts HK & China Gas (00003) to HK$13.5
| Remark: | Real time quote last updated: 20/09/2024 18:00 |
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