JP Morgan: Raises target price for HK & CHINA GAS (00003) to HKD 7.75, rating upgraded to "Overweight."

JPMorgan released a research report stating that HK & CHINA GAS (00003) has underperformed its peers by approximately 15% year-to-date, due to market concerns over weak profitability in its Chinese operations. However, the companys better-than-expected performance in the first half of the year is likely to ease these concerns and drive the stock price up. The target price has been raised from HKD 7.3 to HKD 7.75, and the rating has been upgraded from "Neutral" to "Overweight." JPMorgan has also raised its earnings per share estimates for the company by 5.7% and 4.4% for 2026-2027, to HKD 0.34, reflecting higher profit assumptions for sustainable aviation fuel. Additionally, it is anticipated that if the company's profit growth momentum can be sustained, it may consider increasing the dividend per share.