CICC: Upgrading CR Gas (01193.HK) Target Price to HK$19, Maintaining "Neutral" Rating

According to the Wisdom Finance APP, J.P. Morgan released a research report stating that China Resources Gas (01193.HK) significantly underperformed the market last year after announcing its annual results. The company's stock price may have stabilized, but there have been no observed improvements in key operating indicators in the recent period that could drive the stock price higher. The bank believes that the profitability of urban gas business may continue to be under pressure, as there is limited room for sales volume growth and gross profit expansion, and new connection volume continues to decline. Although the comprehensive service business is expected to show positive growth in the second half of the year due to its low base, the company's overall profitability may still see a year-on-year decline, with low visibility for growth in 2026. The bank has lowered its profit forecast for 2025 to 2027 by 3% to 4%, raised its target price from HK $18.5 to HK $19, and maintained a "neutral" rating.