[ET Net News Agency, 24 February 2020] HSBC Global Research lifted its target price for
Hong Kong & China Gas (HKCG)(00003) to HK$15.5 from HK$15 and maintained its "hold"
rating.
It cited management indicating outlook on the expected slowdown in gas consumption in
2020 and the impact of COVID-19 for both Hong Kong and mainland China. Towngas China also
has reasonable exposure to the industrial segment with a 60% mix of gas sales volume.
HSBC incorporated its latest numbers from Towngas China (01083). It lowered HK gas sales
volume to 0% for 2020 (from 1%) due to a slowdown in economic activity. It also slightly
lowered HKCG's gas sales volume in mainland China.
Following the above-mentioned changes, the research house's 2019-21 earnings were
revised down by 0-1%. (KL)