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China Gas Shares Fall Sharply After Fiscal Year Results

By Clarence Leong


Shares of China Gas Holdings Ltd. fell sharply on Monday morning trade, after it reported a 27% decline in its fiscal year net profit.

Shares fell 9.4% to HK$10.58, on track for its biggest one-day drop in more than three months. It was down 35% for the year.

The Hong Kong-headquartered company posted 7.66 billion Hong Kong dollars (US$975.9 million) net profit for the year ended March 31, compared with HK$10.48 billion a year earlier, it said in a late Friday filing. Total revenue for the full year rose 26% to HK$88.23 billion.

Earnings were dragged by slower new gas pipeline connections due to disruptions caused by the Covid-19 restrictions in China. The company added 2.9 million new household connections in the fiscal year, a 42% decline from the prior year. Meanwhile, natural gas sales grew 18%, which the company said was supported by environmental policies and the transition to a low-carbon economy.

Citigroup analysts said the results came in below their estimate and lowered the target price on the stock to HK$14.50 from HK$15.00. However, it still maintains a buy rating on the stock, as it believes the investment risk is lower, given that the company is focusing more on cash flow.


Write to Clarence Leong at


(END) Dow Jones Newswires

June 26, 2022 22:53 ET (02:53 GMT)

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