Quote | Super Quote
Super Quote   |   Detail Quote   |   Interactive Chart   |   Transaction   |   Related News   |   Related Securities   |   Company Information   |   Dividend Records   |   Short Sell
01193 CHINA RES GAS
RTNominal down25.650 -0.750 (-2.841%)
Others

04/10/2018 15:23

[I-bank focus]Universal cut in gas connection fees unlikely

[ET Net News Agency, 4 October 2018] On 28 September, the Chongqing municipal
government proposed to reform the gas connection business by cancelling installation
charges, which would effectively cut the final connection fee to RMB1,000/household from
RMB2,150.
While the market appears concerned that the reduction or even cancellation or connection
fees could spread nationwide, the industry leaders believed what is happening in Chongqing
as actually a one-off incident given its higher gas penetration is already at 70%
(national average 35-40%), according to HSBC Global Research, who has recently interviewed
the management of the gas utilities.
Assuming connection fees cut by 50% nationwide, HSBC estimated earnings downside of
12-37% for 2019 for the gas utilities it covers, except for Beijing Enterprises (00392).
With share prices down by 11-20% since 27 September, the market seems to have priced-in
some worst-case scenarios.
HSBC believes a universal cut in connection fees across China is unlikely to occur, but
sees the risk of government intervention in the first- and second-tier cities with more
mature penetration rates and/or higher-than-average connection charges.
The research house revised its target prices for the the gas utilities it covers as
follows:
Name Rating Target Price
--------------------------------------------------------
Towngas China (01083) Buy HK$7.60 from HK$8.60
Beijing Ent (00392) Buy HK$45.00 from HK$46.00
ENN Energy (02688) Buy HK$80.00 from HK$90.00
CR Gas (01193) Hold HK$30.00 from HK$34.00
HK & China Gas (00003) Hold HK$15.50 from HK$15.50

(KL)

Remark: Real time quote last updated: 19/03/2024 15:24
  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
A Member of HKET Holdings
Customer Service Hotline:(852) 2880 7004     Customer Service Email:cs@etnet.com.hk
Copyright 2024 ET Net Limited. http://www.etnet.com.hk ET Net Limited, HKEx Information Services Limited, its Holding Companies and/or any Subsidiaries of such holding companies, and Third Party Information Providers endeavour to ensure the availability, completeness, timeliness, accuracy and reliability of the information provided but do not guarantee its availability, completeness, timeliness, accuracy or reliability and accept no liability (whether in tort or contract or otherwise) any loss or damage arising directly or indirectly from any inaccuracies, interruption, incompleteness, delay, omissions, or any decision made or action taken by you or any third party in reliance upon the information provided. The quotes, charts, commentaries and buy/sell ratings on this website should be used as references only with your own discretion. ET Net Limited is not soliciting any subscriber or site visitor to execute any trade. Any trades executed following the commentaries and buy/sell ratings on this website are taken at your own risk for your own account.