BofA Securities anticipates CH RES GAS-100 (01193) will register merely a 5% full-year profit decline, maintaining its Neutral rating. The institution reduced 2025-2027 EPS forecasts by 6%-9%, citing diminished gas sales growth, slower integrated service expansion, and heightened selling and administrative expenses. Consequently, it revised down the target price from HK$23.5 to HK$21, calculated through price-to-book and discounted cash flow models.

Post-earnings discussions revealed expectations of a stark 38% first-half profit contraction to HK$2.15 billion, attributed to sluggish operational metrics and accelerated cost allocations shifting from later to earlier months. Positives emerged through the company's commitment to stable interim and final dividends—implying a 4.7% yield—and plans to repurchase approximately 3% of outstanding shares between September and December.

January-May metrics showed a 1% yearly dip in gas sales, with residential consumption rising 4% while industrial and commercial segments fell 3%-4% and 2% respectively. Profit per cubic meter climbed RMB0.01 to RMB0.50, though new connections plummeted 20%. Integrated service revenue retreated 8%, while integrated energy revenue jumped by double digits. May sales mirrored the downtrend, sliding 1%, with tariff-related emergency orders proving insignificant. Anti-graft measures suppressed catering demand, while property-linked sectors—constituting 15% of sales—recorded the sharpest declines. Off-season gas costs dropped roughly RMB0.10 per cubic meter, largely transferred to industrial and commercial clients.

Management expressed caution for the latter half amid macroeconomic fragility and resilient gas expenses. Non-staff operating costs are projected to stabilize annually despite these headwinds.