＜Research＞Citi Upgrades CHINA RES GAS (01193.HK) to Buy, Opens 90D Positive Catalyst Watch

　　According to a research report from Citi, it has opened a 90-day positive Catalyst Watch on CHINA RES GAS (01193.HK) +0.300 (+1.060%) Short selling $8.83M; Ratio 16.793% , with a forecast of its profit performance in 1HFY2024 exceeding market expectations. Citi also expects the recurring net profit of CHINA RES GAS to grow by 24.7% YoY, mainly driven by a 7% YoY increase in natural gas sales, a higher dollar margin, a YoY decrease in the depreciation of the Renminbi, and a reduction in the loss of its operation in Tianjin.

　　The broker added that the average cost of debt of CHINA RES GAS will fall from 2.4% to 2.2% this year with its efforts in reducing capex (especially on M&As) and a rise in its RMB debt portfolio, implying a continued decline in interest costs. After taking into account the abovementioned factors, Citi has decided to raise the target price of CHINA RES GAS from $29.5 to $32, and upgrade its rating from Neutral to Buy accordingly.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-15 12:25.)

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