Zhi Tong Cai Jing·2025-08-29 08:25Core Viewpoint - Citi has downgraded the target price for China Resources Gas (01193) from HKD 28.5 to HKD 21, reflecting a negative outlook on the company's performance due to industry challenges and weak earnings forecasts for the fiscal years 2025 to 2027 [1] Financial Performance - The company's earnings for the first half of the year were weak, primarily impacted by cyclical headwinds in the core gas business, which accounts for 74% of EBIT, and significantly underperforming comprehensive service business (CSB) [1] - Earnings per share forecasts have been reduced by 15%, 7%, and 3% for the fiscal years 2025, 2026, and 2027 respectively [1] Dividend Policy - Although the interim dividend has increased year-on-year, management has not committed to raising the full-year dividend [1] Market Position - Despite the negative performance, the stock has shown relative weakness this year, which has largely reflected the challenges faced by the industry [1] - The company maintains a recovery potential, leading to a "outperform" rating despite the downgrade in target price [1]