Gas stocks rose again. As of press release, Xinao Energy (02688) rose 5.69% to HK$65; China Gas (00384) rose 5.17% to HK$7.73; and China Resources Gas (01193) rose 4.25% to HK$24.55.
The Zhitong Finance App learned that gas stocks rose again. As of press release, Xinao Energy (02688) rose 5.69% to HK$65; China Gas (00384) rose 5.17% to HK$7.73; China Resources Gas (01193) rose 4.25% to HK$24.55; and Ganghua Smart Energy (01083) rose 1.62% to HK$3.14.
According to the news, gas price adjustment plans for residential pipelines have recently been announced in many places, and the sales price of gas for residential pipelines has all been raised. Earlier, on March 15, the Shenzhen Municipal Development and Reform Commission issued the “Notice on Jointly Adjusting the Sales Price of Pipeline Natural Gas in Our City”, which raised the sales price of natural gas for residential and non-residential pipelines starting March 16. The adjustment amount was 0.31 yuan/cubic meter (that is, 10% of the first-tier price for residents' gas consumption). In addition, regions such as Xinghua City, Zhenjiang City, Tongzhou District of Nantong City, and Wucheng District of Fuzhou have also recently raised gas sales prices for residents.
According to Tianfeng Securities, as of March 15, 2024, price linkage mechanism documents or price adjustment notices have been issued, involving 125 administrative units at the city and county levels. In 2024, gas price linkage mechanisms in various regions will continue to advance, which will benefit urban combustion companies to fix gross margins. Furthermore, the bank is optimistic that the fall in international gas prices in 2024 will drive upstream costs down, while demand for natural gas is expected to pick up further.