Guotai Junan: Initiate "buy" rating for CHINA GAS HOLD (00384) with a target price of 8.28 Hong Kong dollars.

Guotai Junan released a research report stating that it is initiating coverage on CHINA GAS HOLD (00384) for the first time with a "hold" rating. Combining relative valuation and absolute valuation, the target price is set at 8.28 Hong Kong dollars. The company's earnings per share for the fiscal years 2025 to 2027 are projected to be 0.63, 0.69, and 0.79 Hong Kong dollars, with the company's dividend value highlighted. The bank believes that the company's profit structure continues to optimize, and the stability of operating cash flow is expected to improve. Improved gross margin and progress in debt reduction will boost operating cash flow growth. In addition, with capital expenditure slowing down, free cash flow is expected to improve. The expected dividend per share is 0.5 Hong Kong dollars, and the current stock price corresponds to a dividend yield of 7.5% for the fiscal year 2025, demonstrating strong dividend attractiveness.