HSBC Research raises the target price for CHINA GAS HOLD to 6.7 yuan, maintaining a "Hold" rating

HSBC Research published a report indicating that China Gas (00384.HK) is expected to announce its fiscal year 2025 results on June 27, with the market anticipating challenges such as weak demand and connections. Cash flow and dividend resilience remain key to valuation, and attention should be paid to the latest developments regarding the spin-off of the smart living business for listing. The rating is maintained at "Hold," with the target price raised from HKD 6.2 to HKD 6.7.

Regarding the outlook for fiscal year 2026, the bank expects the company's operational guidance to be relatively conservative, and anticipates that the dividend should remain at HKD 0.5 per share, while capital expenditure is expected to be maintained at HKD 3 billion to HKD 3.5 billion