[ET Net News Agency, 16 January 2018] Citi Research cut its target price for China
Resources Gas (CRG)(01193) to HK$32 from HK$34, and maintained its "buy" rating, given its
13.4x 2018 PE looks inexpensive.
The research house lowered its CRG 2017-19 net profit estimates by 3-12%, mainly on a
lower dollar margin for retail natural gas sales and fewer household connections.
Being a state-owned enterprise, CRG is prudent in looking for extra growth from rural
connections and is vulnerable to dollar margin cut from public service responsibility,
Citi said. (KL)