HSI1 26,231.79 +82.48 245.13B
HSCEI1 9,048.53 +9.19 89.90B
Back    Zoom +    Zoom - Block Traded
HSBC Research Cuts Earnings Forecasts for TG SMART ENERGY/ HK & CHINA GAS, Expects Robust Gas Sales in HK
2026-01-09 15:07:27
The urban gas utility sector is facing headwinds such as a slowdown in gas sales growth and a decline in the number of new users, though profit margin expansion has offset some of these impacts, HSBC Research said in a report.

HSBC Research expects retail gas sales to have remained stable in 2H25. While the number of new users for TG SMART ENERGY (01083.HK) is expected to decrease by 16% YoY in 2025, gas sales in Hong Kong will likely stay solid alongside a basically flat sales volume, and the prices will go up because of a gas price hike in August 2024.

The broker has kept a Buy rating on TG SMART ENERGY but cut its target price from HKD4.7 to HKD4. HK & CHINA GAS (00003.HK)'s rating remains Hold, with a target price unchanged at HKD6.6.

Considering the reduced contribution from the renewable energy business, HSBC Research has lowered its earnings forecasts for TG SMART ENERGY by 6-7% for 2025-27 and for HK & CHINA GAS by 7-8%.
~



AAStocks Financial News
Web Site: www.aastocks.com