China Resources Gas Group Limited (HKG:1193) Investors Are Less Pessimistic Than Expected
It's not a stretch to say that China Resources Gas Group Limited's (HKG:1193) price-to-earnings (or "P/E") ratio of 10.9x right now seems quite "middle-of-the-road" compared to the market in Hong Kon
Changes in Hong Kong stocks | Natural gas surplus price mechanism comprehensively boosts China Resources Gas (01193) up more than 4% Xinao Energy (02688) by more than 3%
Some gas stocks rose in early trading. As of press release, China Resources Gas (01193) rose 4.35% to HK$25.2; Xinao Energy (02688) rose 3.13% to HK$67.6; and Ganghua Smart Energy (01083) rose 1.3% to HK$3.12.
Gas stocks rose 4.35% to Haohuarun Gas (01193), and gas fee increases were announced. Agencies indicate that the gross margin of urban fuel companies is expected to gradually recover
Jinwu Financial News | Gas stocks rose collectively. China Resources Gas (01193) rose 4.35%, Xinao Energy (02688) rose 3.13%, Beijing Holdings (00392) rose 1.83%, Hong Kong China Gas (00003) rose 1.52%, China Gas (00384) rose 1.25%, and Kunlun Energy (00135) rose 1.07%. Haitong International released a research report saying that as of April 2024, a total of 125 regions across the country announced gas bill increases one after another. Among them, the Chengdu region increased 0.16 yuan/square meter, and the Shenzhen region increased 0.31 yuan/square meter
Haitong International: Gas prices are rising one after another across the country, and the gross margin of urban fuel companies is expected to gradually recover
The Zhitong Finance App learned that Haitong International released a research report stating that as of April 2024, 125 regions across the country have announced gas fee increases one after another. Among them, the Chengdu region increased 0.16 yuan/square meter, the Shenzhen region increased 0.31 yuan/square meter, the Tianjin region increased 0.29 yuan/square meter, and the Fuzhou region increased 0.45 yuan/square meter. The overall average increase was around 10%. It is recommended to focus on urban gas companies that benefit from the gradual realization of favorable prices on the residential side, account for a relatively large share of overseas gas purchases, and have excellent fundamentals and environmental, social, and governance performance
Shen Wan Hongyuan: Urban fuel companies will fully benefit from the three major favorable factors of volume increase, price reform, and old reform
Against the backdrop of falling global gas prices and recovering consumer demand, CICC will fully benefit from the three major favorable factors of volume increase, price reform, and old reform. CICC is optimistic about the increase in both the profitability and valuation of CICC.
Changes in Hong Kong stocks | Gas stocks continue to rise recently, and the fall in international gas prices is expected to reduce upstream purchaser-side costs. Local gas price linkage mechanisms continue to advance
Gas stocks continued their recent gains. As of press release, Xinao Energy (02688) rose 4.32% to HK$66.35; China Gas (00384) rose 3.55% to HK$7.87; and China Resources Gas (01193) rose 2.66% to HK$25.05.
Gas stocks rose collectively, Xinao Energy (02688) rose 4.87%. Institutions say the industry benefits from high certainty of profit and growth, and is extremely valuable for investment
Jinwu Financial News | Gas stocks rose collectively. As of press release, Xinao Energy (02688) rose 4.87%, China Gas (00384) and China Resources Gas (01193) rose more than 3%, and Beijing Holdings (00392) and Kunlun Energy (00135) both rose more than 2%. According to the news, the CITIC Securities Research Report pointed out that with the introduction of the Shenzhen gas favorable price policy, the national gas price promotion work is progressing steadily, and the recovery of urban fuel profits is more flexible due to falling gas prices. In the current weak macroeconomic environment, the industry benefits from high certainty of profit and growth, and has great investment value. It is recommended to focus on the higher return and valuation of underlying assets
Huatai Securities: Domestic and foreign green hydrogen projects are vigorously deployed, and the scale of green hydrogen is expected to continue to rise as penetration increases in the future
Huatai Securities released a research report saying that hydrogen is mainly used in refining and industry. According to the IEA, global demand for hydrogen energy will exceed 95 million tons in 2022.
Hong Kong Stock Concept Tracking | Local gas price linkage mechanisms continue to promote, institutions are optimistic about boosting the performance of gas companies (with concept stocks)
In 2024, gas price linkage mechanisms in various regions will continue to advance, which will benefit urban fuel companies to fix gross margins
Changes in Hong Kong stocks | Xinao Energy (02688) rose more than 5%, leading gas stocks in many places to push household gas prices down, and the fall in international gas prices is expected to drive upstream costs down
Gas stocks rose again. As of press release, Xinao Energy (02688) rose 5.69% to HK$65; China Gas (00384) rose 5.17% to HK$7.73; and China Resources Gas (01193) rose 4.25% to HK$24.55.
Tianfeng Securities: Local gas price linkage mechanisms continue to be promoted to benefit urban combustion companies to fix gross margins
I am optimistic that the fall in international gas prices will drive upstream costs down, while demand for natural gas is expected to rise further.
Changes in Hong Kong stocks | China Gas (00384) rises more than 5%, leading gas stocks, international gas prices falling back, reducing the costs of urban combustion companies, and terminal profit prices continue to advance
Gas stocks were generally higher. As of press release, China Gas (00384) rose 5.26% to HK$7.41; China Resources Gas (01193) rose 4.85% to HK$23.8; and Xinao Energy (02688) rose 2.82% to HK$61.95.
China Resources Gas (01193.HK) gains 7.038,000 shares from J.P. Morgan
Gelonghui, April 8 | According to the latest equity disclosure data from the Stock Exchange, on April 2, 2024, China Resources Gas (01193.HK) was granted JPMorgan Chase & Co. to increase its holding of 7.0318 million shares at an average price of HK$21.8344 per share, involving approximately HK$154 million. After the increase in holdings, JPMorgan Chase & Co.'s latest number of open positions was 117,879,430 shares, and the holding ratio increased from 4.79% to 5.09%.
Bank Rating | Citibank: Lowering Runrun's target price to HK$26 to maintain a “buy” rating
Citi published a report, lowering Runran's net profit forecast of 9% to 10% from this year to 2026, mainly based on additional annual depreciation expenses of 350 million yuan for the Chongqing gas supply project since last year, as well as other revenue reductions, which cannot be covered by financial cost cuts. The bank also lowered its target price for Runrun from HK$28 to HK$26, maintaining a “buy” rating. Citi pointed out that it was surprising that Runrun spent an additional 350 million yuan in depreciation expenses each year, but the expenses are non-cash, and the cash profit margin since this year still seems to be ahead of the full-year guideline. The bank also said that the current price of the stock is equivalent to 9.7 times the projected price-earnings ratio this year.
Citibank: Maintaining China Resources Gas's “Buy” Rating and Lowering Target Price to HK$26
Citi released a research report stating that it maintained the “buy” rating of China Resources Gas (01193) and lowered its net profit forecast of 9% to 10% from 2024 to 2026, mainly based on additional annual depreciation expenses of 350 million yuan for the Chongqing gas supply project since last year, as well as other revenue reductions that cannot be covered by financial cost cuts. The target price was lowered from HK$28 to HK$26. Citi pointed out that it was surprising that Runrun spent an additional 350 million yuan in depreciation expenses each year, but the expenses were non-cash, and the cash profit margin since this year still seems to be ahead of the full-year guideline.
Bank Rating|Damo: Runrun's stock price is expected to rise by about 70% to 80% within 30 days
According to a report published by Morgan Stanley, recent transactions in China Resources Gas shares have made short-term valuations more attractive. The company's shares were excessively sold after announcing last year's results. However, Runrun's core profit performance and dividend growth this year are still superior to most peers. Therefore, it is expected that Runrun's stock price will rise by about 70% to 80% within 30 days. The target price for Damo Yurunran is HK$27, and the rating is “increase in holdings”. Damo also said that in view of Runrun's high asset quality concentrated in major Chinese cities, the company's long-term growth prospects are expected to be better.
Damo: Target price of HK$27 for China Resources Gas's “increase in holdings” rating
According to a research report released by Morgan Stanley, the share price of China Resources Gas (01193) is predicted to rise by about 70% to 80% in the next 30 days. It is believed that the stock will be oversold after its performance, making short-term valuations attractive. The target price is HK$27, and the rating is “increase in holdings.”
Damo: Target price of HK$27 for China Resources Gas (01193) “gain” rating
Damo predicts that the stock price of China Resources Gas (01193) will rise by about 70% to 80% in the next 30 days.
Tianfeng Securities: Maintaining China Resources Gas's “buy” surplus price rating policy will have a positive impact on gross sales margins
Tianfeng Securities released a research report stating that maintaining the “buy” rating of China Resources Gas (01193), the net profit returned to mother is estimated to be HK$57.3, 63.7, and 7.15 billion HK$7.15 billion respectively, up 9.7%, 11.2% and 12.2% year-on-year. The market will gradually return to normal in 2024, and the gradual recovery of downstream natural gas demand. Continued promotion of the favorable price policy will have a positive impact on the company's gross sales margin, but the market is still in a fragile balance and faces many uncertainties. According to the report, China Resources Gas continues to explore market space and expand the scale of operations. 2023 Group-level updates
Tianfeng Securities: Maintaining China Resources Gas (01193)'s “buy” rating surplus policy will have a positive impact on gross sales margins
Tianfeng Securities expects net profit of China Resources Gas (01193) to be HK$57.3, 63.7 and 7.15 billion in 2024 to 2026, respectively.
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