HSBC Global Research Update: HSBC Global Research has revised its financial assessment of CHINA RES GAS, noting a significant share price decline of approximately 35% year-to-date, but indicating that the current valuation is becoming reasonable as focus shifts to dividend performance.
Dividend and Share Repurchase Plans: CHINA RES GAS has committed to maintaining its 2025 dividend per share (DPS) at least flat year-over-year and plans to repurchase about 3% of its outstanding shares, supporting a projected dividend yield of 4.8%.
Target Price Adjustment: The target price for CHINA RES GAS has been upgraded from "Reduce" to "Hold," with the target price increased from HKD 17 to HKD 20 due to lowered debt cost assumptions.
Market Context: The report highlights that the expected dividend yield of CHINA RES GAS is competitive with the industry average, which ranges from 4.9% to 5%, excluding CHINA GAS HOLD.
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.
