Ge Long Hui·2025-09-08 06:14Core Viewpoint - Morgan Stanley's research report indicates that China Resources Gas has significantly underperformed the market in the past year, with expectations that the stock price may stabilize, but no key operational indicators have been observed to drive price increases [1] Summary by Category Financial Performance - The company's urban gas business profitability is likely to remain under pressure due to limited sales growth and gross margin expansion potential, alongside a continued decline in new connection volumes [1] - Overall profitability may record a year-on-year decline in single digits, with low visibility for growth projected until 2026 [1] Business Segments - The comprehensive service business is expected to recover to positive growth in the second half of the year due to a low base effect, but this may not significantly impact overall profitability [1] Forecast Adjustments - Earnings forecasts for 2025 to 2027 have been revised down by 3% to 4%, with the target price slightly increased from HKD 18.5 to HKD 19, while maintaining a "neutral" rating [1]