CICC: Maintaining China Gas (00384) Outperform Rating Target Price of 10 Hong Kong Dollars.

According to the report released by Zhongjin, considering the improvement in China Gas (00384) cash flow situation, it is expected that dividend distribution will remain stable. The company plans to pay a interim dividend of HK$0.15 per share for 1HFY26, which is flat compared to the previous year. The rating of outperforming the industry and the target price of HK$10 are maintained, corresponding to a FY26/FY27 18.4x/17.3x P/E (5% dividend yield), with an upside potential of 16.3% from the current stock price. The current stock price corresponds to FY26/FY27 15.8x/14.9x P/E.