by winston » Wed Nov 21, 2012 12:09 pm
China - Natural Gas
not vested
CHINA GAS HOLD (00384.HK) rated Conviction Buy by GS on robust natural gas demand in China
Goldman Sachs noted in a report that the natural gas price reform will pose short-term pressure on the profit of natural gas distributor.
However, due to the robust natural gas demand and large selling price discount against competing fuels, the pass-through system will continue to function.
The CAGR of natural gas demand in 2011-15 is expected to reach 16%, mainly driven by car and power generation growth. KUNLUN ENERGY (00135.HK) is believed to be favorably positioned in the development of LNG vehicles.
The rating of CHINA GAS is lifted from Neutral to Conviction Buy, with target raised from $4 to $5.5. KULUN is maintained at Buy, but excluded from Conviction Buy list, with target raised from $16.5 to $17.5.
ENN ENERGY (02688.HK) is maintained at Neutral with target raised from $28 to $33. BEIJING ENT (00392.HK) is maintained at Neutral with target raised from $52 to $52.7.
Source: AAStocks Financial News
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