02688 Overview

Stock Performance: Several Hong Kong gas companies experienced declines in share prices, with China Gas Holdings down 1.34% and China Resources Gas down 2.44%.

Short Selling Activity: Notable short selling activity was reported, with China Gas Holdings having a short selling ratio of 26.606% and HK & China Gas at 23.762%.

Analyst Ratings: ENN Energy received an "Overweight" rating with a target price increase from 66.5 to 72.5, while HK & China Gas was downgraded from "Overweight" to "Neutral".

Market Updates: Kunlun Energy saw a slight increase in share price, while Jefferies upgraded HKEX to "Buy" and raised target prices for BEA and BOCHK.

JPMorgan's Cautious Outlook: JPMorgan maintains a cautious view on Chinese gas utilities, predicting disappointing annual results and limited improvement for 2026.

Top Picks and Ratings: KUNLUN ENERGY is rated Overweight with a target price increase to $9, while ENN ENERGY is also rated Overweight due to a significant A/H discount, with target prices raised accordingly.

Downgrade of HK & China Gas: HK & CHINA GAS has been downgraded from Overweight to Neutral, with a slight target price increase reflecting its reasonable valuation after recent price hikes.

Market Context: The report highlights uncertainties in the market, suggesting that investors may consider taking profits on some HK utilities amid concerns over US rate cuts.

Market Performance: The Hang Seng Index (HSI) rose by 149 points (0.6%) to close at 26,085, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw gains, closing at 5,662 and 9,198 respectively, with a total market turnover of $210.47 billion.

Active Heavyweights: Notable stock movements included PING AN (+6.7%), XIAOMI (+1.9%), and MEITUAN (+1%), while TENCENT experienced a slight decline of 0.3%.

HSI & HSCEI Constituents: Key performers included CHINA LIFE (+5.5%), BIDU-SW (+5%), and HANSOH PHARMA (+3.7%), while SHENZHOU INTL saw a significant drop of 3.4%.

HSMI & HSSI Constituents: HAICHANG HLDG faced a sharp decline of 17.5%, and RIMAG GROUP dropped by 13.7%, whereas SINOTRUK gained 3.5%, reaching a new high.

Market Performance: The Hang Seng Index (HSI) fell by 252 points (1.0%) to 25,843, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 1.3%.

Active Heavyweights: Major stocks like Alibaba, Tencent, and HKEX saw declines, with Alibaba closing down 2% and Tencent down 1.1%, amidst significant short selling activity.

Notable Movers: PICC P&C and XPENG faced substantial drops of 3.9%, while TECHTRONIC IND and ENN ENERGY recorded gains, with TECHTRONIC IND up 3.3%.

High Performers: Stocks such as FIH, MMG, and CMOC hit new highs, with FIH increasing by 5.4%, indicating some positive movements in the market despite overall declines.

ENN Energy Privatization Delay: ENN Energy has extended the deadline for dispatching its privatization scheme document to no later than January 30, 2026, due to the need for more time to meet pre-conditions, which was anticipated by the market.

Impact on Share Prices: JPMorgan believes the delay in ENN Energy's privatization scheme may have a slight negative effect on its share price, while its H-shares are viewed as offering better risk-return compared to A-shares.

China Gas Hold Performance: China Gas Hold reported a 24.2% decline in interim net profit for 1HFY2026, with weak operational indicators, but is expected to see a gradual recovery in gas sales over the next few months.

Market Opportunities: JPMorgan suggests that investors consider market entry opportunities in KUNLUN Energy, which is projected to achieve over 5% sales growth in 2H25, alongside improvements in gas sales for other companies like China Resources Gas.

Market Performance: The HSI rose by 209 points (0.8%) to 26,068, while the HSTI and HSCEI also saw gains, closing at 5,654 and 9,188 respectively.

Active Heavyweights: Notable stock movements included BABA (+3.3% to $156.5), Tencent (+0.8% to $616.5), and declines in Xiaomi (-2% to $40.2) and Meituan (-1.5% to $101).

Top Gainers Among Constituents: Sunny Optical surged by 6.1% to $67.4, Zijin Mining increased by 5% to $32.24, and JD Health rose by 3.3% to $63.1.

Significant Moves in HSMI & HSSI: ZTE experienced a notable rise of 11.6% to $35.08, while Chinagoldintl climbed 8.4% to $161.1, both hitting new highs.