The Zhitong Finance App learned that Daiwa released a research report saying that the rating of China Resources Gas (01193) was downgraded from “outperforming the market” to “outperforming the market” and lowered the earnings forecast per share for 2022-24 by about 2%-4%. The main risk was that gas prices were higher than expected. The target price was lowered 1.1% to HK$27.2 from HK$27.5 as it may still face multiple adverse factors in 2023.

According to the report, the increase in gas sales may fall short of market expectations. Since mid-November 2022, China Resources Gas's stock price has rebounded 22%. The bank believes that the market has taken into account the recovery in natural gas sales and the better-than-expected situation in 2023. Natural gas sales were weak in the fourth quarter of 2022. Also, China Resources Gas's 2022 gas sales growth forecast was lowered from 9% to 8%, and the 2023 growth forecast was lowered from 12% to 11%, and it is believed that there may be a further decline.