Gas Distributors

[winston]

Not vested.

DJ MARKET TALK:Time To Cherry Pick China Gas Distributors -Nomura

1128 [Dow Jones] Nomura says "time to cherry pick" China gas distributors, expects 3 sector themes for 2010:-
1) easing supply shortage, which will lift volume growth;
2) increasing property supplies leading to brisk connections;
3) M&A activity to drive growth.

FY10 sector average P/E of 22X set against FY09-11 EPS CAGR of 35%;

Top picks CR Gas (1193.HK), which industry leader, Xinao Gas (2688.HK), which sensitive to rising supplies, connections. Both rated Buy, target prices at HK$14.00, HK$26.00 respectively. CR Gas last +1.2% at HK$11.48, Xinao down 0.1% at HK$19.90

Source: Dow Jones Newswire

[iam802]

link on Liquidfied Natural Gas (LNG).

http://www.lngworldnews.com/events/

[winston]

China

Yesterday's big loser was the gas sector, as China may impose a 6 percent upper limit for return-on-assets.

ENN Energy (2688) plunged 12 percent to HK$36.50. But the fall was a bit of over- reaction, as the limit was not that new.

With 6 percent limited return, the sector shouldn't be affected much, as share prices in this sector had soared about 40 percent in 2017. However, the "bad news" triggered profit taking.

Dr Check recommends grasping this opportunity to buy on dip. I like TownGas China (1083), whose share price fell 6 percent to HK$4.52 yesterday. Any further dip to near HK$4.40 should be a good bargain. If the firm is privatized, the major shareholders will pay more than HK$4.97.

Source: Dr Check, The Standard