HK Stock Market Move | CHINA RES GAS(01193) rose more than 4% after getting Morgan Stanley's near three-year profit forecast adjustment. The company's first half-year non-GAAP profit performance was impressive.

CHINA RES GAS (01193) rose more than 4%, as of the time of writing, up 4.04% to HK$29.6, with a turnover of HK$42.52 million. On the news front, Morgan Stanley released a research report stating that it has raised the target price for CHINA RES GAS by 2%, from HK$33.4 to HK$34.1, mainly reflecting better profit forecasts, and maintained a "hold" rating. Morgan Stanley stated that it has raised profit forecasts for CHINA RES GAS for 2024-2026 by 2%, taking into account actual performance in the first half of 2024, mainly due to better profit margin forecasts and extending valuation to 2025 based on a 13 times price-to-earnings ratio, previously 14 times for 2024. In the first half of this year, CHINA RES GAS achieved revenue of HK$52.08 billion, a year-on-year increase of 7.7%; achieved net profit attributable to owners of the parent company of HK$3.46 billion, a year-on-year decrease of 2.5%, but excluding one-time gains, achieved net profit attributable to owners of the parent company of HK$3.46 billion, a year-on-year increase of 21.2%. Free cash flow reached HK$1.9 billion, a significant increase of 562.3% year-on-year. The company declared a dividend of 25 HK cents per share for the first half of 2024, a 66.7% increase year-on-year.