Citibank: Maintaining China Resources Gas (01193)'s “Buy” Rating and Lowering the Target Price to HK$32.1

The Zhitong Finance App learned that Citi released a research report stating that it maintained the “buy” rating of China Resources Gas (01193) and lowered the target price from HK$32.5 to HK$32.1. Its net profit forecast for last year was 4% lower than market expectations. Furthermore, the company's compound annual profit growth rate for this year and next two years is expected to reach 8%, and it is optimistic that the company's financial situation as a state-owned enterprise is stable and the investment risk is low.

The bank said that China Resources Gas's net profit forecast for 2024 to 2026 was lowered by 8.3%, 9.5% and 9.2%, respectively, to reflect the reduction in its retail gas sales growth forecast. The average annual growth rate forecast for 2024 to 2025 is 3%, which is lower than the company's target growth of 6% last year, mainly due to falling short of expectations in the industrial sector; the company reports performance in Hong Kong dollars, which is affected by exchange rate fluctuations.