Citi Lifts HK & China Gas Rating to Buy, Raises Price Target to HK$8.2

Stock News08-20

Citi has upgraded HK & China Gas (00003) from "Neutral" to "Buy" in its latest research report, also increasing the price target by 9.3% from HK$7.9 to HK$8.2.

The upgrade is driven by the company's advanced biofuels segment, which delivered results surpassing expectations and lifted first-half performance beyond forecasts. The bank anticipates that robust market demand, fueled by sustainable aviation fuel (SAF) mandates in the EU and the UK, will sustain the company's improving momentum.

Looking ahead, Citi projects earnings growth of 16-20% for HK & China Gas between 2026 and 2028, primarily supported by rising biofuel sales volumes.

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