The analyst rating for TG SMART ENERGY (01083.HK) has been initiated with a 30-day negative catalyst watch by Citi due to concerns that the market will likely reduce earnings estimates for the company. This expectation is based on larger-than-expected reductions in China's grid electricity tariffs, which will negatively impact the forecast for the renewable energy business and lead to a decrease in retail gas sales volume. Although there is an anticipated increase in unit profit margins, the overall adjustments have resulted in a 7.5-8.3% reduction in earnings estimates for 2025-27. Consequently, Citi has lowered the target price for the stock by 13% from HKD4.6 to HKD4, while maintaining a Neutral rating.
