[ET Net News Agency, 14 December 2018] Goldman Sachs downgraded China Gas Holdings
(00384) to neutral and maintained the target price of HK$31.7.
The research house said it still remains attracted to China Gas's strong growth profile
and good project execution. However, with the stock now trading on 17x P/E (12-mth rolling
forward) and some softening in China economic indicators into CY19, the valuation is no
longer as compelling as three months ago. Whilst valuation metrics are not hugely
demanding, they believe the market may begin to focus on risks associated with gas supply
constraints, the softening economy and cash collection. (RC)