According to the Zhixin Finance APP, China Gas (00384) has risen more than 4% and, as of press time, is up 4.31% at HKD 7.75, with a turnover of HKD 75.3345 million.

Sinolink Securities believe that since 2023, the recovery of natural gas consumption in China under the economic recovery has shown an upward trend, and the upstream gas supply is relatively sufficient. The reform of the downstream natural gas pricing mechanism has accelerated and the pricing situation has continued to improve, jointly promoting the growth of sales volume and the recovery of sales price differential of urban gas companies. At the same time, with the international gas price hitting bottom and rebounding, the profit from the conversion of long-term contracts for sale overseas in 2023 Q4 and 2024 is expected to recover. In summary, it is bullish on the improvement of the profit contribution from the sale conversion, as well as the performance growth and valuation recovery of urban gas companies.

Everbright Securities pointed out that many regions are promoting a pricing mechanism for residential gas consumption, coupled with stabilizing or downward procurement prices of upstream gas sources, it is expected that the profitability of urban gas companies will recover. Recommended stocks: China Resources Gas, China Gas Holdings, ENN Energy Holdings, etc.