Financial Performance: CHINA GAS HOLD reported a 2% year-on-year drop in revenue and a 24% fall in net profit for the first half of the fiscal year ending September 2025, missing broker expectations.
Impact of Connection Business: The decline in new residential connections negatively affected revenue and the operating profit margin of the connection business, leading to a forecast reduction in net profit for FY2026 and FY2027.
Dividend Announcement: The company declared an interim dividend per share of HKD15 cents, remaining flat compared to the previous year.
Broker Outlook: Despite the challenges, HSBC Research maintains an Outperform rating on the stock, citing improving cash flow and potential for stable dividends, with a target price set at HKD10.
Wall Street analysts forecast 00384 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00384 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 00384 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00384 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 7.610
Low
Averages
High
Current: 7.610
Low
Averages
High
CICC
CICC
Outperform
maintain
$10
Al Analysis
2025-12-02
Reason
CICC
CICC
Price Target
$10
Al Analysis
2025-12-02
maintain
Outperform
Reason
The analyst rating for CHINA GAS HOLD (00384.HK) is influenced by several factors outlined in the article. Despite reporting a 2% year-over-year drop in revenue and a 24% fall in net profit for the first half of the fiscal year, which was below expectations, the broker CICC maintains an Outperform rating. This decision is based on the following reasons:
1. Improving Cash Flow: The company is showing signs of better cash flow, which is a positive indicator for its financial health.
2. Potential for Stable Dividends: The broker believes that the company has the potential to maintain stable dividends, which is attractive to investors.
3. Target Price: CICC has set a target price of HKD10, suggesting confidence in the stock's future performance despite current challenges.
Overall, while there are concerns regarding the connection business and revised profit forecasts, the positive outlook on cash flow and dividends supports the Outperform rating.
HSBC
HSBC Global Research
Hold
maintain
2025-12-01
Reason
HSBC
HSBC Global Research
Price Target
2025-12-01
maintain
Hold
Reason
The analyst rating for CHINA GAS HOLD (00384.HK) was kept as "Hold" due to the company's worse-than-expected 1HFY26 results, which were attributed to weak sales and grid connection volume, reduced interest income, and a significant decline in government subsidies. Despite these challenges, the target price was raised from HKD 7.2 to HKD 7.6.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
