Shenwan Hongyuan Securities·2025-06-09 04:12Investment Rating - The report maintains a "Positive" investment rating for the public utility and environmental sectors, indicating an expectation of outperformance compared to the overall market [3][4]. Core Insights - The report highlights the narrow fluctuations in global natural gas prices, with European prices rebounding due to supply-side influences. As of June 6, the Henry Hub spot price in the U.S. was $2.68/mmBtu, reflecting a weekly decline of 6.29%, while the Dutch TTF spot price increased by 7.59% to €35.88/MWh [4][7][13]. - The report emphasizes the acceleration of unmanned sanitation layouts driven by aging populations and advancements in AI technology, suggesting a significant growth potential in the sector [4][4]. - Investment recommendations include focusing on companies in the electricity sector such as hydroelectric and nuclear power, as well as natural gas and environmental sectors, with specific companies highlighted for their growth potential [4][4]. Summary by Sections 1. Natural Gas: Global Price Fluctuations and European Price Recovery - Global natural gas prices are experiencing narrow fluctuations, with European prices recovering due to supply-side factors. The report notes a significant increase in European gas prices, with the NBP spot price rising by 8.28% [7][13]. - The report indicates that U.S. natural gas inventories are rising rapidly, maintaining a loose overall market structure, but anticipates a divergence in price trends due to increased demand from rising temperatures in July [7][8][13]. 2. Weekly Market Review - The report states that the gas and power equipment sectors outperformed the CSI 300 index during the review period from May 30 to June 6, while the power and environmental sectors underperformed [30]. 3. Company and Industry Dynamics - The report discusses the State Energy Administration's initiatives to promote the construction of a new power system, focusing on innovative technologies and models [38]. - It also highlights the continuous improvement in ecological environment quality in China, as reported by the Ministry of Ecology and Environment [38]. 4. Key Company Valuation Table - The report provides a valuation table for key public utility companies, indicating various ratings such as "Buy" and "Hold" along with projected earnings per share (EPS) and price-to-earnings (PE) ratios for 2025 [40][42].