Glonghui, November 9 | Morgan Stanley published a report that predicts that by 2030, China's natural gas demand growth will remain high in units and continue to rise thereafter. As China's economic growth stabilizes, “coal-to-gas” in the industrial sector is likely to accelerate again and reverse this year's weak trend. In terms of stock preferences, Damo is still optimistic about China Resources Gas's first-tier city business. Since the organic growth in natural gas demand is more sustainable, Runran should benefit from it, while Kunlun Energy is the bank's first choice because it is the most defensive against falling connection fees. The upgrade of Kunlun's energy rating from “syncing with the market” to “increased holdings” and raised the target price from HK$7 to HK$8.5. The bank expects market connection fee concerns to continue this year and next two years. Da Mo raised China's gas rating from “holdings reduction” to “synchronizing with the market” because of the relatively high valuation and the greatest downside risk in terms of connection fees. The target price rose from HK$7 to HK$7.4. The bank maintained gas's “in sync with the market” rating and lowered the target price from HK$7 to HK$6.