A director at China Gas Holdings Ltd sold 2,000,000 shares at 7.380HKD and the significance rating of the trade was 67/100. 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 year...
The general evaluation of CHINA GAS HOLDINGS (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 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date March 4, 2022, the closing price w...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Gas demand remains strong in 5M21 with apparent gas consumption jumped 17.3% yoy in May and 17.1% yoy in 5M21. We expect to see favourable policy rollouts regarding gas sector reform in the future, benefitting the leaders. However, volume growth and margins are likely see contraction in 2H21, considering higher LNG prices and a high base in 2H21. Maintain MARKET WEIGHT and upgrade China Gas to BUY after the recent share price correction as we believe further downside is limited.
REGIONAL Sector Plantation: Indonesia’s Ministry of Finance has issued a revised regulation on palm oil export levies, which will take effect from Jul 21. GREATER CHINA Results China Gas (384 HK/HOLD/HK$25.30/Target: HK$27.50): FY21: Weaker-than-expected earnings; outlook clouded by explosion. Downgrade to HOLD. Update JD.com (JD US/BUY/US$78.23/Target: US$100.00): Transforming into a supply chain-based technology platform; solid growth ahead. Shariah Gems Virtual Conference ENN Energy (2688 HK...
China Gas reported weaker-than-expected FY21 net profit growth of 14% yoy. It guided 15% net profit growth and 5m new gas connections for FY22. We share management’s view that the explosion is an isolated incident, rather than a systemic issue at the group level. However, in the near term, we believe the incident would continue to cloud the company’s growth outlook and re-rating would require further catalysts. Downgrade to HOLD with a lower target price of HK$27.50. Entry price: HK$24.00.
KEY HIGHLIGHTS Results China Gas (384 HK/HOLD/HK$25.30/Target: HK$27.50) FY21: Weaker-than-expected earnings; outlook clouded by explosion. Downgrade to HOLD. Update JD.com (JD US/BUY/US$78.23/Target: US$100.00) Transforming into a supply chain-based technology platform; solid growth ahead. Shariah Gems Virtual Conference ENN Energy (2688 HK/HOLD/HK$148.00/Target: HK$140.00) Steady growth outlook; await better entry points. Estun Automation (002747 CH/BUY/Rmb37.98/Target: Rmb44.60) Smooth...
GREATER CHINA Strategy Alpha Picks: Jun 21 Conviction Calls: Macro uncertainties drive shift to defensive bias. INDONESIA Strategy Alpha Picks: Add ITMG and TLKM: We add ITMG and TLKM to our portfolio. Our picks: ITMG, TLKM, BMRI, KLBF, ASII, BSDE, UNTR, INTP and BEST. MALAYSIA Strategy Alpha Picks: Keeping Faith In Event Catalysts: May 21’s alpha picks portfolio underperformed the FBMKLCI, dragged by Scomnet; Jun 21 picks: HAPL, Inari, Mr DIY, Press Metal and Yinson. SINGAPORE Strategy Alpha...
Chinese equity markets made further gains in May 21, but outperforming sectors were mostly defensive, ie consumer staples and healthcare. Though TMT regained some momentum in late-May 21, we prefer a defensive bias in Jun 21 as the yield gap has narrowed, but macro uncertainties remain. Add CCB, China Gas, Kingboard Laminates, JD, Link REIT and Sino Biopharm to our BUY list.
GREATER CHINA Sector Coal: Strong domestic coal market to sustain in heating season. Results China Gas (384 HK/BUY/HK$28.00/Target: HK$37.60): 1HFY21: Cashflow turnaround eases market concerns; full-year target remains intact. Update Geely Auto (175 HK/HOLD/HK$22.70/Target: HK$23.00): Takeaways from conference call. Sunny Optical (2382 HK/BUY/HK$153.90/Target: HK$178.00): Recovery of shipment and specification in sight. INDONESIA Update Summarecon Agung (SMRA IJ/BUY/Rp845/Target: Rp1,100): Mar...
China Gas reported a 5.5% yoy growth in 1HFY21 core net profit, with its operating cashflow surging 71% yoy and free cashflow turning positive to HK$3.8b. This eased market concerns over its cashflow conditions. Dollar margin expanded in 1HFY21, and is expected to remain largely stable this winter. China Gas has guided for 15-20% core net profit growth for the full year, implying strong recovery for the rest of the year. Maintain BUY with target price of HK$37.60.
KEY HIGHLIGHTS Sector Coal Strong domestic coal market to sustain in heating season. Results China Gas (384 HK/BUY/HK$28.00/Target: HK$37.60) 1HFY21: Cashflow turnaround eases market concerns; full-year target remains intact. Update Geely Auto (175 HK/HOLD/HK$22.70/Target: HK$23.00) Takeaways from conference call. Sunny Optical (2382 HK/BUY/HK$153.90/Target: HK$178.00) Recovery of shipment and specification in sight.
We have seen steady demand recovery in national gas consumption since 3Q20 and our channel checks with gas distributors indicated strong gas sales growth at high teens in October. We foresee a colder winter this year, but supply will not be much of a concern. Expect valuation recovery to continue in the coming months, particularly for laggards (eg China Gas), which might see improvement in cash flow in its 1HFY21 results announcement on 27 November. Maintain OVERWEIGHT on the sector.
The A-share market outperformed the Hong Kong market in July, leading the MSCI China index to a new two-year high. However, with full recovery still elusive in 3Q20, we are not inclined to chase the market rally. We maintain our strategy of low beta, and add FAI-related stocks, namely CNBM, and Weichai Power. Other new inclusions are Sands China, and Sino Biopharm.
China Gas remains upbeat on the dollar margin for FY21 and Russian gas imports in FY22. The company said it could be the only gas distributor to see growth in new connections over the next five years. It guides for a >17% increase in net profit for FY21. Maintain BUY and target price of HK$37.60.
GREATER CHINA Update China Gas (384 HK/BUY/HK$24.10/Target: HK$37.60): Key takeaways from conference call. INDONESIA Sector Property: More optimism in 2H20 and 2021. Maintain OVERWEIGHT. MALAYSIA Update Axiata (AXIATA MK/BUY/RM3.38/Target: RM4.25): Focusing on near-term cash conservation and liquidity. Positively, recovery trends are encouraging with the opening of economies in June. BUY on depressed valuation. SINGAPORE Results Sembcorp Industries (SCI SP/BUY/S$1.78/Target: S$2.20): 1H20: De...
China Gas’ FY20 core net profit surged 16.4% yoy despite the COVID-19 impact. Retail gas sales volume grew 6% yoy, dragged by the 13% yoy drop in 4QFY20. Gas sales growth recovered to 8% yoy in Apr 20 and 10% yoy in May 20. Dollar margin remained flat yoy at Rmb0.605/cbm in FY20. The company launched LPG micro pipeline network projects in 2020, which should fuel earnings growth in the future. We lift our target price to HK$37.60. Maintain BUY.
GREATER CHINA Sector Property: Sales momentum sustained in primary market. Results China Gas (384 HK/BUY/HK$27.20/Target: HK$37.60): FY20: Solid earnings growth; LPG micro pipeline network to fuel future growth. Update BOC Aviation (2588 HK/HOLD/HK$48.20/Target: HK$50.20): Rising airline failures raise credit risk. The United Labs (3933 HK/BUY/HK$6.98/Target: HK$9.00): Expect insulin segment to continue to outperform; upgrade to BUY. INDONESIA Update Ciputra Development (CTRA IJ/BUY/Rp630/Targe...
Despite the market rally in the first 20 days of the month, May 20 still saw a sharp decline amid rising Sino-US tensions. We expect equity markets to remain volatile in June; hence, we prefer low-beta and stick to the beneficiaries of policy support, durable themes and names with strong balance sheets. Our key picks are Ausnutria Dairy, CEG, CIFI, Kingsoft and ZTE.
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