Jingu Financial News | Haitong Int'l issued research reports, stating that due to the steady growth of retail sales volume and connection business, China Res Gas (01193) achieved further increase in revenue and gross profit margin in the first half of the year. Residential and industrial users drove the growth of the company's retail sales volume. The comprehensive energy business revenue and profitability have been comprehensively improved.

Looking ahead to 2024, the bank believes that the macro and industry environment still pose challenges to future profitability, but the company's overall operation remains relatively stable. Based on the company's performance, the bank adjusted the company's main operating income for FY24-26 to be 102.65/108.36/114.39 billion Hong Kong dollars, corresponding to a net income attributable to the parent company of 5.43/5.7/5.98 billion Hong Kong dollars (originally forecasted: main operating income for 2024-26 was 105.381/111.544/124.889 billion Hong Kong dollars, net income attributable to the parent company was 5.768/6.447/7.092 billion Hong Kong dollars). The target price has been raised to 37.9 HKD/share (WACC adjusted from 6.7% to 7.2%, perpetual growth rate increased from 0.8% to 2.5%), maintaining an "outperform the market" rating.