[ET Net News Agency, 4 February 2021] BOCI Research lifted its target price for China
Gas Holdings (00384) to HK$40.17 from HK$33.39 and reiterated its "buy" rating.
The research house expects China Gas to post decent earnings growth in the next few
years. The new Smart MicroGrid business will provide the new growth driver for connection
income. Gas sales should grow rapidly as more rural coal-to-gas (RCG) clients get access
to gas supply and the supply of gas from Russia increases rapidly.
BOCI also expects its cash flow to improve as the cash collection from RCG projects
accelerates and it limits the investments in new RCG projects. (KL)