The Zhitong Finance App learned that gas stocks were strong. As of press release, China Gas (00384) rose 6.98% to HK$8.12; Xinao Energy (02688) rose 5.39% to HK$76.3; Ganghua Smart Energy (01083) rose 3.95% to HK$3.16; and China Resources Gas (01193) rose 3.77% to HK$27.5.
GF Securities pointed out that since 2023, domestic natural gas smooth price work has accelerated. Along with the National Development and Reform Commission issued guidance on upstream and downstream price linkage of natural gas in the first half of the year, many parts of the country have begun joint adjustments of consumer gas sales prices to rationalize the relationship between domestic natural gas prices and gas source costs. Gas-side prices in many places have increased by about 10%-20%. Some are accompanied by a 20% increase. It is expected that more cities will gradually rationalize gas prices in the future, and urban combustion companies may also experience an increase in performance.
Dongwu Securities, on the other hand, said that the price difference of leading urban combustion companies is expected to be 0.50 to 0.52 yuan/square in '23. The bank previously estimated that the gas distribution fee for urban combustion was reasonable at least 0.6 yuan/square meter, and there is still room for 20% repair of the price difference. Currently, urban combustion profits have not reached the permitted rate of return. In the context of policies supporting favorable prices for residents, urban combustion profits will recover, and services and management are expected to improve at the same time. Between 22 and 24 M3, 47% of urban residents at prefectural level and above had a net price increase of 0.21 yuan/square meter. It is expected that the net price will continue to fall in 24 years.