China Gas Holdings (P Chip)
- ExchangeHong Kong Stock Exchange
- SectorOil Equipment, Services & Distribution
Gas demand was hit during the Chinese New Year holidays, given the coronavirus outbreak. Commercial gas consumption has been hurt the most and industrial gas demand could fall if the preventive measures last for a prolonged period. The connection business should be least impacted. The gas ASP cuts in Zhejiang and Hubei should have little impact on dollar margin. Maintain OVERWEIGHT on the sector.
In Jan 20, equity markets plummeted due to the outbreak of the new coronavirus. Lockdowns and extended Lunar New Year holidays across provinces are hurting the manufacturing, retail and transportation sectors. We remove Ausnutria Dairy, Wuxi Biologics and Tongcheng-elong from our BUY list and close out names that are prone to profit-taking, such as Zoomlion and Sany Heavy. Add beneficiaries of the virus outbreak CSPC and Mindray.
The general evaluation of CHINA GAS HOLDINGS LTD. (HK), a company active in the Gas Distribution industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date January 17, 2020, the closing price was HKD 31.65 and its potential was estimated at HKD 35.29.
A director at China Gas Holdings Ltd sold 414,400 shares at 29.555HKD and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The name...
National apparent gas demand growth rebounded to 4.1% yoy in Nov 19 from 3.0% yoy in Oct 19. Demand expansion slowed to 9.0% yoy in 11M19. Gas import dependence rate remained high at 43.6% in 11M19. National gas demand is expected to grow 7-9% yoy in 2020, driven by city gas consumption. We expect more regulations to be rolled out to support the ongoing reform in the gas sector. Maintain OVERWEIGHT on the sector.
UOB Kay Hian published on 11th December a 143-page China/HK strategy report, which highlights our preferred sectors and stocks for 1H 2020. The report includes sections on:- * Market Strategy for 2020: pages 4 – 15; * Stock Recommendations: page 16; * China 2020 Economic Outlook: pages 17 – 26; * Review of Sectors: pages 27 – 112; * Company Updates - Top Stock Picks: pages 114 – 143. For more information about the UOBKayHian dealing services in the Asia-Pacific region and the research on Asian companies (including bespoke packages and free trials), please contact David Osman or Simon Dickson i...
China Gas reported 22.2% yoy growth in core net profit in 1HFY20 despite a 3.3% yoy decline in revenue. Retail gas sales expanded 15.4% yoy in 1HFY20 with residential and industrial gas sales up 18.3% yoy and 18.2% yoy. Dollar margin came in at Rmb0.621/cbm, vs Rmb0.625/cbm and Rmb0.61/cbm in 1HFY18 and FY19 respectively. New residential connections hiked 15.8% yoy. We raise our target price to HK$39.35 to reflect China Gas’ dominance in northeast China and maintain BUY.
GREATER CHINA Sector Property: First LPR decrease this year; limited impact on the property market. Results China Gas (384 HK/BUY/HK$31.70/Target: HK$39.35): 1HFY20: Solid gas sales expansion with improving dollar margins. Tongcheng-eLong (780 HK/BUY/HK$12.30/Target: HK$18.00): 3Q19: Solid results with improving margins; concern remains over travel outlook. INDONESIA Strategy Potential Rally Until March; Enter Indonesia Now!: JCI could rally starting Dec 19 to Mar 20. There is a 74% probability the JCI could deliver a positive return over this period. MALAYSIA Results MRCB-Quill Reit (MQREIT M...
Feasibility Study Results in December to be a Catalyst for this Junior