Xinao Energy's retail gas volume increased 2.7% year on year in the first quarter. Among them, industrial and commercial gas volume increased 2.9% year on year, and civilian gas volume increased 2.5% year on year.
The Zhitong Finance App learned that CICC released a research report saying that Xinao Energy (02688)'s profit forecast for 2024 and 2025 remains unchanged, maintaining the “outperforming industry” rating. Considering the positive catalytic effect of the increase in gas volume growth on the company's valuation, the target price was raised by 7.7% to HK$70.
The report quoted the company's announcement and the first quarter operating data report. Retail gas volume increased 2.7% year on year during the period. Among them, industrial and commercial gas volume increased 2.9% year on year, and civilian gas volume increased 2.5% year on year. The company's gas sales growth accelerated further quarterly in the first quarter. The report determined that the main reason was the company's more flexible sales strategy and the year-on-year decline in liquefied natural gas (LNG) prices, which led to an improvement in downstream demand.