---
title: "Citigroup: Downgrades CHINA RES GAS target price to HKD 32.1 and lowers net profit forecast"
description: "HSBC has lowered its net profit forecasts for CHINA RES GAS for 2024 to 2026 by 8.3%, 9.5%, and 9.2%, respectively, reflecting a reduced expectation for retail natural gas sales volume growth. The ave"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/224163221.md"
published_at: "2025-01-07T08:26:33.000Z"
---

# Citigroup: Downgrades CHINA RES GAS target price to HKD 32.1 and lowers net profit forecast

> HSBC has lowered its net profit forecasts for CHINA RES GAS for 2024 to 2026 by 8.3%, 9.5%, and 9.2%, respectively, reflecting a reduced expectation for retail natural gas sales volume growth. The average annual growth rate forecast is 3%, below the company's target of 6%. The target price has been lowered from HKD 32.5 to HKD 32.1, maintaining a "Buy" rating, and it is expected that the company's profit compound annual growth rate will reach 8% over the next two years

Citi published a report indicating that it has lowered the net profit forecasts for CHINA RES GAS for 2024 to 2026 by 8.3%, 9.5%, and 9.2%, respectively, to reflect a reduced expectation for the growth of its retail natural gas sales volume. The average annual growth rate forecast for 2024 to 2025 is 3%, lower than the company's target of 6% growth last year, mainly due to industrial sector growth falling short of expectations. The company reports its performance in Hong Kong dollars, which is affected by the depreciation of the Renminbi against the Hong Kong dollar. The bank stated that it has lowered the target price for CHINA RES GAS from HKD 32.5 to HKD 32.1, maintaining a "Buy" rating, and noted that its net profit forecast for last year is 4% lower than market expectations. Additionally, it is expected that the company's profit will achieve an average compound growth rate of 8% over the next two years, and it is optimistic about the company's solid financial condition as a state-owned enterprise, with relatively low investment risks

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.