[ET Net News Agency, 19 October 2018] Jefferies Research lowered its target price for
China Gas Holdings (00384) to HK$23.5 from HK$26.5, and upgraded its rating to "hold" from
"underperform".
The research house said China Gas's share price has dropped by 33% in the past three
months. It thinks the market has priced in that the tailwind for rural coal-to-gas
conversion has ended, and earnings quality from the rural business is poor due to high
capex requirements.
Jefferies said the two China Gas "rural" projects it visited in September are excellent,
but typical low-hanging fruit. These two projects require 0/2km branch gas pipeline
respectively, in order to connect with city pipeline systems. As a result, the capex
requirements are Rmb 0/1.1mn respectively, which are fully covered by connection fees.
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00384 CHINA GAS HOLD
Nominal 
7.120 -0.060 (-0.836%) Others
19/10/2018 17:30
[I-bank focus]Jefferies cuts China Gas (00384) to HK$23.5
| Remark: | Real time quote last updated: 25/04/2024 17:29 |
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