China Gas (384-hk): Potential Rebound
George Lam July 3, 2020 3:10 AM
China Gas's share price has dropped about 30% from the high of November last year, however China's indicators showed a rebound in economic activity since March...
China Gas (384-hk), a Chinese natural gas company, recently announced that full-year net income rose 11.7% on year to 9.19 billion yuan on revenue of 59.54 billion yuan, up 0.3%. The company proposed a final dividend of 0.40 Hong Kong dollar per share, taking full-year dividend to 0.50 Hong Kong dollar per share, up 13.6% from the prior year.
China Gas's share price has dropped about 30% from the high of November last year, amid coronavirus outbreak. However, as China's indicators showed a rebound in economic and industrial activity since March, the coronavirus impact on the current full-year earnings might not be as big as investors would have thought initially.
From a technical point of view, China Gas's share price shows signs of stabilizing after approaching its previous low as shown on the daily chart. In fact, it has reached the lower boundary of a long-term symmetrical triangle, while the relative strength index shows a bullish divergence. Bullish investors might consider $22.30 as the nearest support, with prices likely to rebound to test the 1st and 2nd resistance at $27.10 and $28.90. Alternatively, a break below $22.30 would be a bearish signal and may open a path to the next support at $19.70.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.