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Investing.com - HSBC has upgraded China Resources Gas Group Ltd. (HK:1193) (OTC:CRGGF) from Reduce to Hold, while raising its price target to HK$20.00 from HK$17.00.
The upgrade comes after China Resources Gas shares declined 35% year-to-date, significantly underperforming peers who ranged from a 12% decline to a 27% gain during the same period.
HSBC notes that China Resources Gas now guides for dividend per share to remain at least flat year-over-year, with an additional plan to repurchase approximately 3% of outstanding shares by the end of 2025.
The firm highlighted the company’s positive free cash flow management and healthy balance sheet, with net debt-to-equity ratio at 25% for June 2025.
China Resources Gas offers a 4.8% dividend yield for 2025, which HSBC indicates is in line with industry peers who range between 4.9-5.0%, excluding China Gas Holdings due to its weaker cash flow and gearing profile.
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