Soochow Securities·2026-02-24 09:56Investment Rating - The report maintains an "Overweight" rating for the gas industry [1] Core Insights - The report highlights that warmer weather and tensions in the US-Iran situation have led to a decline in US gas prices, while European gas prices have seen a slight increase [5][10] - It notes that the domestic gas prices remain stable during the Spring Festival holiday, with a year-on-year increase in China's apparent gas consumption of 2.3% to 433.2 billion cubic meters in 2025 [28] - The report emphasizes the ongoing progress in price adjustment mechanisms across cities, which is expected to enhance profitability and valuation recovery for city gas companies [40] Price Tracking - As of February 20, 2026, the week-on-week changes in gas prices are as follows: US HH down 3.4%, European TTF up 1.1%, East Asia JKM up 1.4%, and China's LNG ex-factory price stable at 2.5 yuan/cubic meter [10][12] - The report indicates that the US gas market price has decreased due to warmer weather, with storage levels dropping by 1.5% year-on-year [15][17] Supply and Demand Analysis - The report states that European gas consumption from January to November 2025 was 396.4 billion cubic meters, reflecting a year-on-year increase of 3.5% [17] - It also mentions that the average daily gas generation in Europe has decreased significantly, with a week-on-week drop of 34.1% and a year-on-year decline of 61.9% [17] Investment Recommendations - The report recommends focusing on city gas companies that are optimizing costs and promoting price adjustments, highlighting companies such as Xinao Energy, China Resources Gas, and Kunlun Energy [52] - It suggests paying attention to companies with quality long-term contracts and flexible scheduling, such as Jiufeng Energy and Xinao Shares [52] - The report emphasizes the importance of energy independence and recommends companies with gas production capabilities like Shouhua Gas [52]