The Zhitong Finance App learned that Citi released a research report stating that it raised the Hong Kong China Gas (00003) investment rating from “neutral” to “buy”, and the target price was also raised by 9.3% to HK$8.2 from HK$7.9. The bank raised the gas company's rating in view of the better-than-expected performance in the advanced biofuels business, which drove its performance in the first half of the year to exceed expectations.

The bank expects that, driven by the EU and UK Sustainable Aviation Fuel (“SAF”) mandates, market demand is strong, and the improvement in Towngas's performance will continue. The bank expects Towngas's profit to increase by 16-20% in 2026-2028, mainly due to increased biofuel sales.

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