[ET Net News Agency, 24 May 2018] Citi Research raised its target price for China Gas
(00384) to HK$38 from HK$33, and retained its "buy" rating.
The research house said the target price reflects extra profit upside from additional
gas storage facilities (capex estimated at Rmb6.3bn) and a lower WACC given less
investment risk from gas shortages after the increased storage capacity.
If the extra capex is spent over five years in FY2019-23, it would raise budgeted capex
of HK$6.6bn in FY2019 by 24%. Assuming 10% ROI, the gas storage facilities would add to
net profit gradually, including HK$780m in 2023.
Citi said China Gas's 21.3x FY2019 PER (end 31 March) looks undemanding versus 21%
FY2018-20 EPS CAGR.
It said China Gas's retail natural gas (NG) sales growth was +37% yoy in 10-month FY2018
(ended 31 January 2018), exceeding its target of 35% yoy in 2018. The growth rate in
February-March was around 34-35% yoy. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00384 CHINA GAS HOLD
Nominal 
7.180 +0.180 (+2.571%) Others
24/05/2018 17:37
[I-bank focus]Citi raises China Gas (00384) to HK$38
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |