UBS raises the target price for CHINA GAS HOLD to 8.9 yuan, expecting a dividend yield of 7%

AASTOCKS
2026.01.12 03:24

UBS maintains a "Buy" rating on CHINA GAS HOLD (00384.HK) and raises the target price from HKD 8.2 to HKD 8.9, based on its dividend yield of 7%, which is higher than the industry average of 4% to 5%. Management guidance indicates a per-share dividend of HKD 0.5 for the fiscal year ending March 2026, and the bank believes this dividend level can be sustained in the coming years, providing downside support even in a weak fundamental environment.

The bank has lowered its earnings forecasts for CHINA GAS HOLD for the fiscal years 2026 to 2028 by 21%, 21%, and 23%, respectively, mainly reflecting that the recovery in unit gross profit and gas sales volume is lower than expected, coupled with slower-than-expected growth in value-added services, partially offset by better-than-expected connection volume and connection profit

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