According to the Zhitong Finance app, most gas stocks have risen. As of press time, China Resources Gas (01193) rose 4.8% to HK$29.45; Kunlun Energy (00135) rose 3.01% to HK$8.21; China Gas Holdings (00384) rose 2.03% to HK$7.55; ENN Energy (02688) rose 1.15% to HK$70.15.
Soochow Securities recently pointed out that from 2022 to 2024M5, 52% of China's prefecture-level and above cities have raised the price of gas for residential users by 0.20 yuan per cubic meter. As the off-season arrives, the bank believes that cities that have not yet raised prices will continue to push for price increases during this window of opportunity, and it is expected that more cities will implement price increases before the heating season arrives in 2024 (before the end of October 2024). The elasticity of price increases continues to be evident.
Everbright Securities said that as many regions promote the gas price increase mechanism for residential users and with the stabilization or slight downward trend of the upstream gas procurement price, it is expected that the profit-making ability of urban gas companies will be restored. It is recommended to pay attention to China Resources Gas and China Gas Holdings.