The analyst rating from Citi Research is positive due to several key factors:
1. Share Buybacks: CHINA RES GAS has announced plans to repurchase approximately 60 million shares, which represents 2.6% of its issued shares. This buyback is expected to create upside potential for the stock.
2. Sufficient Cash Reserves: The company has set aside enough cash for these buybacks, indicating financial stability and a commitment to returning value to shareholders.
3. Increased Profitability: The company's profitability is improving, with a projected year-over-year growth in net profit for 3Q25, recovering from a significant decline in the first half of the year.
4. Sales Volume Growth: A modest increase in retail gas sales volume is anticipated, further supporting the positive outlook.
Overall, these factors contribute to the positive catalyst watch on CHINA RES GAS, suggesting potential for stock price appreciation.
