HAITONG INT'L: Maintains "Outperform" rating on HK & CHINA GAS (00003) with target price raised to 6.66 Hong Kong Dollars.

HAITONG INT'L released a research report stating that they maintain a "outperform" rating for HK & CHINA GAS (00003), with projected main operating income for gas in 2024 to 2026 at 59.777 billion, 62.446 billion and 64.947 billion respectively. Corresponding net profit forecasts have been raised to 6.467 billion, 6.69 billion and 6.897 billion respectively (originally forecasted at 6.298 billion, 6.513 billion and 6.713 billion), with a target price adjustment to 6.66 Hong Kong dollars. The report mentions that HK & CHINA GAS has successfully improved operational efficiency through business restructuring and cost reduction measures. The company achieved a total revenue of 27.496 billion in the first half of the year, a decrease of 5.76% year-on-year; core profit of 3.186 billion, an increase of 2.21% year-on-year; net profit of 3.04 billion, a decrease of 15.88% year-on-year, mainly due to a one-time net income obtained from exiting Shanghai Gas the previous year. Basic earnings per share were 16.3 cents, with mid-term dividends remaining unchanged at 12 cents per share. In terms of specific business aspects, total gas sales in Hong Kong were stable year-on-year, while gas sales in mainland city gas increased by 6.76% year-on-year, and the price difference increased by 0.05 yuan per cubic meter to 0.5 yuan per cubic meter.