Lyon released a research report stating that it covered Xinao Energy (02688) and China Resources Gas (01193) for the first time, and both were rated “buy”. Lyon's proprietary analysis quantifies environmental, social and corporate governance (ESG) and energy transition risks to fully assess their impact.
The report points out that natural gas will be the key to developing renewable energy in the mainland. As this energy becomes more accessible and affordable, the mainland gas market will enter a new era and growth cycle. Favourable policy reforms will lead to a more sustainable supply-demand relationship and contribute to a green transition. Meanwhile, growing profit margins per unit, gas demand, and business expansion will drive profits.