[ET Net News Agency, 22 August 2019] Goldman Sachs raised its target price for Towngas
China (01083) by 3% to HK$5 and maintained its "sell" rating.
The research house said Towngas's 1H net income of HK$756mn was 4% stronger than
Goldman's estimate, driven by more resilient gas volume growth and a lower than the
expected tax rate. Goldman expects gas volume growth may face some downward pressure in 2H
(from trade tension and slowing economic activity).
It also expects customer connection growth rates to slow in 2H, as comps get more
challenging. Goldman increased its 2019-21 EPS forecasts by 4%/1%/0% on a lower tax rate
and slightly higher sales volume growth. (KL)