The Zhitong Finance App learned that gas stocks rose in the afternoon. As of press release, Ganghua Smart Energy (01083) rose 4.79% to HK$3.5; Kunlun Energy (00135) rose 3.17% to HK$6.19; Transportation Gas (01407) rose 3.08% to HK$0.67; and Tianrun Gas (01600) rose 2.48% to HK$5.37.
According to the news, due to the slow recovery in downstream demand, some gas source central enterprises have recently launched price reduction promotions involving a small number of contracted gas volumes. Meanwhile, the price of market-based natural gas outside of contracts continued to decline after the heating season. Furthermore, in order to ease the pressure of rising costs, gas surcharge mechanisms for residents in Inner Mongolia, Nanjing, Shijiazhuang, Chongqing and other places have been implemented one after another.
Anxin Securities released a research report saying that with the decline in natural gas procurement costs and the gradual increase in prices of residential gas and the double stimulus on the cost and revenue side, the gross margin gap in urban fuel is expected to gradually recover to a reasonable range. In the long run, natural gas consumption is expected to continue to grow. Similar to thermal power, the bank is optimistic about the reversal of the urban combustion sector's plight.