GLONGHUI, September 5 | J.P. Morgan Chase published a research report saying that China's natural gas distributors did not perform well in the first half of the year, most companies' natural gas sales did not meet standards, and the new connection numbers also disappointed the market. Although some investors expect natural gas profit margins to rise sharply in the second half of the year, most companies still maintain their profit margin guidelines for fiscal year 2023, and expect to complete the transfer of about 60 to 70% of housing costs by the end of the year. The bank said that since industry valuations have already bottomed out, it is believed that the market is aware of the negative factors and is largely reflected in stock prices. However, the bank advised investors to stay on the sidelines until industrial activity and real estate data improve. According to the bank, Kunlun Energy is the industry's first choice. The target price was raised from HK$7.2 to HK$7.35, and the rating was “increased holdings,” while the target price for Hong Kong China Gas was lowered from HK$6.2 to HK$6, with a “neutral” rating.