[ET Net News Agency, 26 February 2021] CCB International Securities (CCBIS) lifted its
target price for China Gas Holdings (00384) to HK$36.5 from HK$34.5 and maintained its
"outperform" rating.
The research house anticipates earnings and cash flow visibility improvement in the
medium term. The company is trading at 12.9x FY2022 P/E, on par with its past-five-year
historical average, and CCBIS views the valuation as undemanding.
It tweaked its FY2022-23 earnings forecasts by 1% each to reflect slightly higher gas
volume assumptions. CCBIS expects a continuous pick up in industrial demand, stronger
seasonal demand from residential customers, and a low base to accelerate retail volume
growth to 22% in 2H FY2021, or 17% for FY2021. (KL)