[ET Net News Agency, 23 November 2020] Goldman Sachs initiated coverage on China
Resources Gas (CRG) (01193) with a "neutral" rating and a target price of HK$41, based on
a 15.5x P/E (on 2021-22 average), which is lower than the average P/E of the past decade
(17.3x).
The research house said the lower target multiple is due to a lack of clarity on new
growth drivers that could neutralize the industry challenges of slower new connections and
gas sales growth.
Goldman said CRG's city gas projects feature a higher average population per project
than other gas distributors. This likely reflects the company's positioning towards larger
cities that have more connectable households and potentially stronger gas affordability,
allowing the company to deliver more gas sales growth in the long run.
Goldman estimated an 8% operating profit CAGR for 2021-25. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
01193 CHINA RES GAS
Nominal 
29.200 +0.750 (+2.636%) Others
23/11/2020 16:55
{I-bank focus}Goldman starts CR Gas (01193) at HK$41
| Remark: | Real time quote last updated: 23/09/2024 17:59 |
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