Citigroup: Maintains Neutral Rating on Hong Kong and China Gas (02638.HK) with Performance in Line with Expectations, Yet Limited Growth in Dividend per Share.

According to the Zhitong Finance APP, Citibank released a research report maintaining a "Neutral" rating for Hongkong Electric Holdings Limited-SS (02638.HK) with a target price of HKD 7, as the performance in the first half of the year met expectations. The company has a defensive profit base, stemming from a regulated asset base in its Hong Kong electricity business that guarantees a fixed 8% return on assets, and this asset base is increasing at a compound annual growth rate of 2.8% over five years.