HSBC Research Adjusts CHINA RES GAS Rating to Hold and Increases Target Price to HKD20
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.
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UBS Raises Target Price for CHINA GAS HOLD to HKD 8.9, Anticipates 7% Dividend Yield
UBS Rating and Target Price: UBS maintains a Buy rating on CHINA GAS HOLD (00384.HK) and raises its target price from HKD8.2 to HKD8.9, citing a strong dividend yield of 7% that surpasses the industry average of 4-5%.
Dividend Sustainability: The broker anticipates that CHINA GAS HOLD can sustain a dividend per share of HKD0.5 for the fiscal year ending March 2026, providing downside support despite weak fundamentals.
Daiwa's Ratings and Target Prices for Gas Stocks (Table)
Stock Performance: HK & China Gas remains stable with no change in share price, while China Res Gas has seen a slight decline of 0.120 (-0.560%).
Short Selling Data: Significant short selling activity is noted across the companies, with HK & China Gas at $29.80M (28.257% ratio) and China Res Gas at $42.00M (35.576% ratio).
Analyst Ratings: HK & China Gas has been upgraded from "Hold" to "Outperform" with a target price increase from 7.1 to 7.7, while China Gas Hold maintains an "Outperform" rating with a target of 8.3.
Market Outlook: Daiwa has upgraded its view on the CN natural gas sector to "Neutral," expecting improved fundamentals in 2026.
Daiwa Raises CN Gas Industry Rating to Neutral and Upgrades HK & China Gas to Outperform
Natural Gas Demand Outlook: Daiwa predicts a rebound in natural gas demand this year, but a mild winter in China may limit heating demand growth due to temperature fluctuations.
Market Competition: Increased competition among urban gas suppliers is expected as they offer discounts to attract industrial clients, although a mild winter should prevent gas supply shortages and limit profit risks for gas companies in mainland China and Hong Kong.
Sector Rating Upgrade: Daiwa has upgraded the rating of the Chinese gas utility sector from Negative to Neutral, favoring high-dividend stocks such as CHINA GAS HOLD and HK & CHINA GAS.
Stock Performance: HK & CHINA GAS' rating has been upgraded from Hold to Outperform, with a target price increase from HKD7.1 to HKD7.7.
Daiwa Revises Outlook for China's Natural Gas Sector to Neutral, Expects Better Fundamentals by 2026
Daiwa's Industry Outlook: Daiwa has upgraded its view on China's natural gas industry to Neutral, anticipating improvements in company fundamentals by 2026.
Sales Volume Growth: The firm estimates that major Chinese natural gas companies will see low- to mid-single-digit growth in sales volume compared to last year's low base.
Stock Selection Preferences: Daiwa favors high-yield stocks, specifically highlighting CHINA GAS HOLD (00384.HK) and HK & CHINA GAS (00003.HK) for investment.
Target Price Adjustments: CHINA GAS HOLD's rating has been upgraded to Outperform with a target price of HKD8.3, while HK & CHINA GAS has a target price of HKD7.7 due to potential business improvements.
JPM: ENN ENERGY's Privatization Plan Delayed; KUNLUN ENERGY Recommended for Focus
ENN Energy Privatization Delay: ENN Energy has extended the deadline for dispatching its privatization scheme document to no later than January 30, 2026, due to the need for more time to meet pre-conditions, which was anticipated by the market.
Impact on Share Prices: JPMorgan believes the delay in ENN Energy's privatization scheme may have a slight negative effect on its share price, while its H-shares are viewed as offering better risk-return compared to A-shares.
China Gas Hold Performance: China Gas Hold reported a 24.2% decline in interim net profit for 1HFY2026, with weak operational indicators, but is expected to see a gradual recovery in gas sales over the next few months.
Market Opportunities: JPMorgan suggests that investors consider market entry opportunities in KUNLUN Energy, which is projected to achieve over 5% sales growth in 2H25, alongside improvements in gas sales for other companies like China Resources Gas.
CICC Lowers Earnings Outlook for CHINA GAS HOLD (00384.HK), Maintains Outperform Rating
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.
UBS Raises Target Price for CHINA GAS HOLD to HKD 8.9, Anticipates 7% Dividend Yield
UBS Rating and Target Price: UBS maintains a Buy rating on CHINA GAS HOLD (00384.HK) and raises its target price from HKD8.2 to HKD8.9, citing a strong dividend yield of 7% that surpasses the industry average of 4-5%.
Dividend Sustainability: The broker anticipates that CHINA GAS HOLD can sustain a dividend per share of HKD0.5 for the fiscal year ending March 2026, providing downside support despite weak fundamentals.
Daiwa's Ratings and Target Prices for Gas Stocks (Table)
Stock Performance: HK & China Gas remains stable with no change in share price, while China Res Gas has seen a slight decline of 0.120 (-0.560%).
Short Selling Data: Significant short selling activity is noted across the companies, with HK & China Gas at $29.80M (28.257% ratio) and China Res Gas at $42.00M (35.576% ratio).
Analyst Ratings: HK & China Gas has been upgraded from "Hold" to "Outperform" with a target price increase from 7.1 to 7.7, while China Gas Hold maintains an "Outperform" rating with a target of 8.3.
Market Outlook: Daiwa has upgraded its view on the CN natural gas sector to "Neutral," expecting improved fundamentals in 2026.
Daiwa Raises CN Gas Industry Rating to Neutral and Upgrades HK & China Gas to Outperform
Natural Gas Demand Outlook: Daiwa predicts a rebound in natural gas demand this year, but a mild winter in China may limit heating demand growth due to temperature fluctuations.
Market Competition: Increased competition among urban gas suppliers is expected as they offer discounts to attract industrial clients, although a mild winter should prevent gas supply shortages and limit profit risks for gas companies in mainland China and Hong Kong.
Sector Rating Upgrade: Daiwa has upgraded the rating of the Chinese gas utility sector from Negative to Neutral, favoring high-dividend stocks such as CHINA GAS HOLD and HK & CHINA GAS.
Stock Performance: HK & CHINA GAS' rating has been upgraded from Hold to Outperform, with a target price increase from HKD7.1 to HKD7.7.
Daiwa Revises Outlook for China's Natural Gas Sector to Neutral, Expects Better Fundamentals by 2026
Daiwa's Industry Outlook: Daiwa has upgraded its view on China's natural gas industry to Neutral, anticipating improvements in company fundamentals by 2026.
Sales Volume Growth: The firm estimates that major Chinese natural gas companies will see low- to mid-single-digit growth in sales volume compared to last year's low base.
Stock Selection Preferences: Daiwa favors high-yield stocks, specifically highlighting CHINA GAS HOLD (00384.HK) and HK & CHINA GAS (00003.HK) for investment.
Target Price Adjustments: CHINA GAS HOLD's rating has been upgraded to Outperform with a target price of HKD8.3, while HK & CHINA GAS has a target price of HKD7.7 due to potential business improvements.
JPM: ENN ENERGY's Privatization Plan Delayed; KUNLUN ENERGY Recommended for Focus
ENN Energy Privatization Delay: ENN Energy has extended the deadline for dispatching its privatization scheme document to no later than January 30, 2026, due to the need for more time to meet pre-conditions, which was anticipated by the market.
Impact on Share Prices: JPMorgan believes the delay in ENN Energy's privatization scheme may have a slight negative effect on its share price, while its H-shares are viewed as offering better risk-return compared to A-shares.
China Gas Hold Performance: China Gas Hold reported a 24.2% decline in interim net profit for 1HFY2026, with weak operational indicators, but is expected to see a gradual recovery in gas sales over the next few months.
Market Opportunities: JPMorgan suggests that investors consider market entry opportunities in KUNLUN Energy, which is projected to achieve over 5% sales growth in 2H25, alongside improvements in gas sales for other companies like China Resources Gas.
CICC Lowers Earnings Outlook for CHINA GAS HOLD (00384.HK), Maintains Outperform Rating
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.
