00384

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.

Company Performance: HSBC Global Research reported that CHINA GAS HOLD (00384.HK) experienced worse-than-expected results for 1HFY26, attributed to weak sales, reduced interest income, and a decline in government subsidies.

Stock Rating and Price Target: The company's rating remains a Hold, with the target price increased from HKD7.2 to HKD7.6 despite a 24.2% fall in interim net profit to $1.334 billion.