Zhitong Financial APP learned that Credit Suisse released a research report saying that Hong Kong And China Gas (00003) "outperformed the market" rating, the target price rose slightly to 9.9 Hong Kong dollars, the company's first-half core net profit of 4.26 billion yuan, up 21% from the same period last year, largely in line with market expectations, mainly due to the strong rebound in operating profits in mainland China, coupled with accelerated growth in new energy, the company declared an interim interest rate of 12 Hong Kong cents per share unchanged.

The bank said that by segment, gas sales in Hong Kong, China fell 2.8 per cent, while operating profit fell 1 per cent, mainly due to the effectiveness of cost control, while urban gas sales in mainland China recovered strongly by 28 per cent, mainly because of a low base in the same period last year. Profit per unit fell to 55 cents per cubic meter.

Credit Suisse pointed out that the management guidelines include that urban gas sales for the whole year will rise by more than 20% compared with the same period last year, while unit profits will remain generally stable, and the company expects to achieve double-digit growth in the smart energy business. at the same time, the company expects to spin off the biomass business in 2024 and so on. Among the local public stocks, the bank tends to choose CKI (01038) and Power Assets (00006), believing that the latter two have higher dividend yields.