In "Major Banks," CICC lowers the earnings forecast for CHINA GAS HOLD and maintains the "Outperform Industry" rating

CICC published a research report indicating that China Gas (00384.HK) experienced a year-on-year revenue decline of 2% for the first half of the fiscal year ending September this year, with net profit falling 24% year-on-year, which was below the firm's expectations. This was mainly due to a decrease in the number of new residential connections during the period, which affected revenue and the operating profit margin of the connection business. The company declared an interim dividend of 15 cents per share, unchanged from the previous year.

Considering the ongoing downward pressure on the connection business, the firm has revised its net profit forecasts for the fiscal years 2026 and 2027 downwards by 9.6% and 8.8% to RMB 2.97 billion and RMB 3.15 billion, respectively. The firm is optimistic about the company's improving cash flow, which could provide potential stable dividends, maintaining an "outperform industry" rating and a target price of RMB 10