Gelonghui, April 2 | CICC released a report saying that China Resources Gas's performance last year fell short of market expectations. The management indicated that this year's gas sales volume increased by 6 to 8% year-on-year, with a gross margin of more than 0.52 yuan per party. Considering that the company's gas projects in Chengdu/Fuzhou and other cities have recently obtained price adjustment documents, LNG spot prices have remained low, and they believe that the company's gross margin repair situation may exceed management guidelines. According to CICC, considering the increase in non-cash amortization and the continued decline, this year's profit forecast was lowered by 24% to HK$5.5 billion, and a profit forecast of 6.2 billion yuan was introduced for next year. Considering the company's abundant cash flow, dividends still have the potential to improve, maintaining the “outperforming industry” rating. Due to lower profit forecasts, the target price was lowered by 22.9% to HK$27.
研报掘金｜中金：下调华润燃气目标价至27港元 维持“跑赢行业”评级
Research Nuggets | CICC: Lowering the target price of China Resources Gas to HK$27 to maintain “outperforming the industry” rating
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