[ET Net News Agency, 10 September 2019] Daiwa Research lifted its target price for
Towngas China (TCCL)(01083) to HK$6.3 from HK$6.25 and maintained its "outperform" rating.
The research house said TCCL's share price has risen by 11% in the past 3 weeks. There
is market speculation of a potential takeover of TCCL by China Resources Gas (CRG)
(01193).
Daiwa believes that this is only speculation and there is nothing concrete. CRG's
management denied any potential takeover deal, and while TCCL did not wish to comment on
the market rumour, it reiterated that TCCL remains an important part of the group's
strategy for its city-gas business in the PRC.
TCCL is currently trading at a 70% discount to HKCG's 36x 1-year forward PER and a 75%
discount to HK & China Gas' (HKCG)(00003) PBR. Thus, Daiwa believes the possibility of
privatisation by HKCG is a much more likely scenario. (KL)
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01083 TG SMART ENERGY
Nominal 
3.000 -0.100 (-3.226%) Others
10/09/2019 09:47
{I-bank focus}Daiwa lifts Towngas China (01083) to HK$6.3
| Remark: | Real time quote last updated: 16/04/2024 17:59 |
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