HK-listed China Resources Gas hits 3-mth low on broker's downgrade

China Resources Gas

09/03/2023 02:57

** Shares of China Resources Gas Group Ltd  1193.HK  fall as
much as 9.4% to HK$28.10, lowest since Dec. 8
    ** Stock on track for fourth straight session of decline;
biggest pct loser in Hang Seng Composite Index in utilities
 .HSCIU   
    ** Daiwa downgrades gas pipeline networks builder and piped
gas distributor to "underperform" from "outperform" and trims TP
to HK$27.2 from HK$27.5, lowers forecast for co's gas sales
volume growth on possibility of slower-than-expected China
economic growth  
    ** Concerns on fundamental issues that hurt entire city-gas
sector's profitability such as lack of adjustment in residential
gas tariff and ineffective execution of cost pass-through
mechanism, is still not fully priced in - Daiwa 
    ** Jefferies says co's recent weakness partly due to
potential FY22 earnings miss and relatively high exposure to
connection profits, which makes it more sensitive to recent
pullback in property stocks 
    ** Hang Seng Composite Index on utilities  .HSCIU  falls 1%
and Hang Seng Mainland Properties Index  .HSMPI  slips 0.2%
    ** Hang Seng Mainland Oil & Gas Index  .HSMOGI  eases 0.3%
while Hang Seng Index  .HSI  climbs 0.1%
    


 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))