[ET Net News Agency, 26 August 2020] Citi Research lowered its target price for China
Resources Gas (CRG)(01193) to HK$46 from HK$50 and maintained its "buy" rating.
The research house cut CRG's 2020-22 net profits forecasts by 5-10% for lower gas sales
volume and new household connections as business recovery post COVID-19 epidemic seems
slower than expected.
Despite the earnings cut, Citi noted positives include (1) rising gas sales and new
connections ahead, (2) financially sound for M&As and payout rise; and (3) inexpensive
14.1x 2021 PER and 3.1% yield.
It added that CRG's net cash was HK$8.1bn (up 50.2%) in 1H. (KL)