HK Stock Market Move | CHINA RES GAS(01193) rises nearly 5% with Citigroup suggesting that it may have potential for growth through stock repurchases.

CHINA RES GAS (01193) rose by nearly 5%, as of the time of writing, it increased by 4.78% to HK$21.48, with a turnover of HK$164 million. On the news front, Citibank released a research report stating that they are carrying out a 30-day positive catalyst observation on CHINA RES GAS, as it may have potential for growth from stock buybacks. CHINA RES GAS has indicated that they have enough cash reserves for buybacks, and they expect to repurchase approximately 60 million shares by the end of this year, representing 2.6% of the issued shares. The bank believes that CHINA RES GAS's profitability has improved, and they expect a year-on-year increase in net profit in the third quarter of this year, rebounding from a 30.5% decline in the first half of the year. They also expect a 1-2% year-on-year increase in retail gas sales volume in the third quarter.