0449 GMT - Towngas Smart Energy is likely to continue to face headwinds from its renewable-energy business, Citi analyst Pierre Lau says in a note, pointing to its 1H results missing expectations. The bank is skeptical on the company's assumption that 2H tariff cuts will be lower, and the negative effect of the tariff cut will be offset by reduced new-project development costs. Citi cuts the target price to 3.40 Hong Kong dollars from HK$3.80, while keeping its rating unchanged. Shares are up 4.1% at HK$3.28.