Zhi Tong Cai Jing·2025-08-29 08:27Core Viewpoint - The report from Citi indicates that while China Resources Gas (01193) may experience short-term stock price volatility due to negative performance, its year-to-date performance has largely reflected industry challenges. The earnings per share forecasts for fiscal years 2025 to 2027 have been reduced by 15%, 7%, and 3% respectively, with the target price lowered from HKD 28.5 to HKD 21. Despite these adjustments, the potential for recovery remains, and the rating is maintained at "Outperform" [1]. Group 1 - China Resources Gas reported weak performance in the first half of the year, primarily impacted by cyclical headwinds in its core gas business, which accounts for 74% of EBIT [1]. - The comprehensive service business (CSB) significantly underperformed expectations, contributing to the overall weak results [1]. - Although the interim dividend increased year-on-year, management did not commit to raising the full-year dividend [1].