The Zhitong Finance App learned that China Hong Kong Energy (00931) increased by more than 30% due to intraday changes. As of press release, it rose 35.71% to HK$0.57, with a turnover of HK$843,700.
Earlier, the company issued an announcement. On March 7, 2024, the company signed a loan capitalization agreement with the chairman of the board of directors, executive director and Dr. Jian Zhijian, the main shareholder. The company will issue a total of 697.7 million capitalized shares to subscribers at a capitalized price of HK$0.43 per capitalized share, which is equivalent to about 10.45% of the expanded total number of issued shares. All capitalized share prices payable by the subscribers will be settled by capitalizing and offsetting the repayment amount of HK$300 million upon completion.
Huachuang Securities said that on March 15, the Shenzhen Development and Reform Commission issued a notice on the joint adjustment of the sales price of pipeline gas throughout the city. After this joint adjustment, the first-tier price of pipeline gas for residents in Shenzhen increased by 10%, and the benchmark sales price for industrial and commercial gas was increased by 7.77%. The bank believes that in recent years, due to factors such as large fluctuations in natural gas procurement costs and repeated epidemics, the valuation level of the urban combustion industry has declined significantly. As of March 15, 2024, the gas III (Shenwan) index PE (TTM) was only 16.89, which is at the 12% quantile since 2021. The valuation of the gas industry may have a lot of room for repair. The valuation of the urban combustion industry may increase in anticipation of improvements in gas sales margins such as favorable prices and stabilizing costs.