Morgan Stanley

According to a report published by Morgan Stanley, according to the management of Yingde Gas (02168.HK), the EBITDA increase in the first five months of this year was less than about 20% of the year-on-year increase reached in the first quarter, or 20-25% as anticipated by the company earlier. This is mainly due to the decline in natural gas output due to low steel production; in addition to the impact of low average selling prices, the prices of industrial gases argon, oxygen, and nitrogen in eastern China in the first quarter of this year fell 8%, 8%, and 1%, respectively, compared to 2014 levels, and there was no sign of a recovery. Management lowered capital expenditure in 2015 to 1.5 billion to 1.6 billion yuan (6.2082, 0.0025, 0.04%), from 1.5 billion to 2 billion yuan.

The bank lowered the company's 2015-2016 profit forecast by 25% and 34% to reflect challenges in the business environment; at the same time, it lowered the target price to 5.6 yuan, which was originally 7.2 yuan.