Daiwa Cuts CHINA RES GAS (01193) Target Price to HK$16 Amid Potential Internal Issues, Maintains "Sell" Rating

Stock News
09/01

Daiwa issued a research report stating that CHINA RES GAS (01193) reported a 30% year-over-year decline in net profit for the first half of the year. As the final city gas company to announce its interim results, CHINA RES GAS underperformed its industry peers across virtually all metrics, suggesting potential management issues within the company. This may prompt investors to demand a higher risk premium.

The firm has reduced its earnings per share forecasts for 2025-2027 by 19% to 25%, while cutting the target price from HK$19.9 to HK$16. The rating remains at "Sell".

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