China Resources Gas Group Ltd
01193: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$52.00 | Jrncsy | Hnsqhnz |
China Resources Gas’ 2022 Results Below Expectation; Shares Fairly Valued
Business Strategy and Outlook
China Resources Gas Group is a state-owned gas utilities group in China engaging in downstream city gas distribution. We expect CRG to generate returns above its cost of capital over the next decade, supporting our narrow-moat rating. China’s goal to increase gas usage to 15% of the country’s energy sources by 2030 will continue to encourage long-term demand growth, in our view. We project CRG’s natural gas sales volume to grow at an 8.2% CAGR during 2022-27.