Investment Rating - The report maintains an "Overweight" rating for the gas industry [1] Core Views - The report highlights that the U.S. is expected to experience a temperature drop, leading to reduced cooling demand, while European storage is progressing and domestic demand is slowly recovering, resulting in relatively stable gas prices across regions [1][10] - It emphasizes the ongoing price adjustments in the domestic market, with a focus on the gradual implementation of pricing reforms that enhance profitability for city gas companies [35] Price Tracking - As of September 19, 2025, the weekly price changes for various gas markets are as follows: U.S. HH -0.2%, European TTF -0.7%, East Asia JKM +0.1%, China LNG ex-factory -0.8%, and China LNG CIF +0.7%, with prices at 0.7, 2.8, 2.9, 2.7, and 2.9 CNY/m³ respectively [5][10] - The average total supply of natural gas in the U.S. decreased by 0.5% week-on-week to 1,118 billion cubic feet per day, while total demand fell by 1.1% to 985 billion cubic feet per day [14] Supply and Demand Analysis - The report indicates that the average natural gas consumption in China for the first seven months of 2025 increased by 0.3% year-on-year to 246.1 billion cubic meters, attributed to warmer winter conditions in 2024 affecting heating demand [26] - In Europe, natural gas consumption for the first half of 2025 was 240.8 billion cubic meters, reflecting a year-on-year increase of 5.8% [17] Pricing Progress - Nationwide, 65% of cities have implemented residential pricing adjustments, with an average increase of 0.21 CNY/m³, indicating a trend towards improved profitability for city gas companies [35] Investment Recommendations - The report recommends focusing on companies that can optimize costs and benefit from the ongoing pricing reforms, highlighting key companies such as New Hope Energy, China Resources Gas, and Kunlun Energy, among others [50] - It also suggests monitoring companies with quality long-term contracts and flexible scheduling capabilities, such as Jiufeng Energy and New Hope Holdings [50]

Investment Rating - The report maintains an "Accumulate" rating for the gas industry [1] Core Insights - The report highlights that the U.S. gas prices have decreased due to sufficient inventory, while European and Chinese gas prices remain stable [4][9] - It emphasizes the gradual progress of price alignment in the domestic market, which is expected to enhance profitability and valuation recovery for city gas companies [36] Price Tracking - As of September 12, 2025, U.S. HH gas prices decreased by 4.8%, while European TTF prices increased by 2.6%. The prices for East Asia JKM, Chinese LNG ex-factory, and Chinese LNG landed prices changed by +0.5%, -0.6%, and -1.4% respectively [4][9][10] - The average total supply of natural gas in the U.S. decreased by 0.1% week-on-week to 1,123 billion cubic feet per day, while total demand decreased by 0.4% to 995 billion cubic feet per day [14] Supply and Demand Analysis - U.S. natural gas consumption in the residential and commercial sectors increased by 16.5% week-on-week, while industrial consumption rose by 0.8% [14] - In Europe, natural gas consumption from January to May 2025 was 2,180 billion cubic meters, a year-on-year increase of 6.6% [16] - China's apparent natural gas consumption from January to July 2025 was 2,461 billion cubic meters, a year-on-year increase of 0.3% [21] Price Adjustment Progress - Nationwide, 65% of cities have implemented residential price adjustments, with an average increase of 0.21 yuan per cubic meter [36] - The report indicates that there is still a 10% room for price gap recovery in the city gas sector [36] Investment Recommendations - The report recommends focusing on companies with cost optimization and supply flexibility, such as Xin'ao Energy, China Resources Gas, and Kunlun Energy, among others [4][36] - It suggests paying attention to companies with quality long-term contracts and cost advantages, such as Jiufeng Energy and Xin'ao Shares [4][36] Important Announcements - The U.S. gas import tariff has been reduced from 140% to 25%, improving the economic feasibility of U.S. gas imports [42] - The European Parliament has agreed to provide greater flexibility regarding natural gas storage targets, allowing for a deviation of 10 percentage points from the 90% storage target [48]

Investment Rating - The report maintains an "Overweight" rating for the gas industry [1]. Core Insights - The report highlights a slight increase in raw gas demand leading to a minor rise in US gas prices, while European storage advancements have contributed to a decrease in gas prices [4][9]. - The overall supply-demand dynamics indicate a modest increase in raw gas demand, with US natural gas market prices rising by 3.3% week-on-week as of August 27, 2025 [16]. - The report emphasizes the ongoing integration of Jiufeng Energy and the gradual implementation of pricing reforms across the country, which are expected to enhance profitability and valuation recovery for city gas companies [35]. Price Tracking - As of August 29, 2025, the week-on-week changes in gas prices are as follows: US HH +3.3%, European TTF -6.6%, East Asia JKM -2.9%, China LNG ex-factory price 0%, and China LNG CIF price -6.2% [9][14]. - The average total supply of natural gas in the US increased by 0.1% week-on-week to 1,127 billion cubic feet per day, while total demand decreased by 3.5% to 1,025 billion cubic feet per day [16]. Supply and Demand Analysis - The report notes that the storage pace in Europe is slower than expected, leading to a week-on-week decrease in European gas prices by 6.6% [17]. - In China, the apparent consumption of natural gas from January to July 2025 increased by 0.3% year-on-year to 246.1 billion cubic meters, attributed to warmer winter conditions affecting heating gas demand [22][27]. Pricing Progress - The report states that 65% of cities have implemented residential pricing reforms, with an average price increase of 0.21 yuan per cubic meter [35]. - The introduction of a new pricing mechanism for provincial natural gas pipeline transportation is expected to lower costs for downstream users and promote industry growth [35]. Investment Recommendations - The report recommends focusing on companies that can optimize costs and benefit from the ongoing pricing reforms, particularly highlighting New Energy, China Gas, and Kunlun Energy as key investment opportunities [4][35]. - It also suggests monitoring companies with quality long-term contracts and flexible scheduling capabilities, such as Jiufeng Energy and Xin'ao [4].

Investment Rating - The report maintains an "Accumulate" rating for the gas industry [1] Core Viewpoints - The report highlights a cooling trend in temperatures leading to a decrease in US gas prices, while European storage efforts are pushing prices up. Domestic gas prices are also experiencing a decline due to slow demand recovery [5][10] - The supply-demand analysis indicates a slight increase in total gas supply in the US, while demand has decreased slightly. European gas prices have risen due to storage efforts, and domestic gas prices have also fallen [15][16] - The report emphasizes the ongoing progress in price adjustments across various cities, which is expected to enhance profitability for city gas companies and support valuation recovery [35] Summary by Sections Price Tracking - As of August 22, 2025, US HH gas prices decreased by 3.1%, while European TTF prices increased by 7.6%. Domestic LNG prices fell by 1.7% [10][12] Supply and Demand Analysis - US total gas supply increased by 0.4% week-on-week to 1,126 billion cubic feet per day, while total demand decreased by 1.2% to 1,061 billion cubic feet per day. European gas consumption for the first five months of 2025 was 2,180 billion cubic meters, up 6.6% year-on-year [15][16] Price Adjustment Progress - Nationwide, 64% of cities have implemented residential price adjustments, with an average increase of 0.21 yuan per cubic meter. The report suggests that there is still a 10% room for price gap recovery [35] Important Announcements - The report notes significant mid-year performance announcements from various gas companies, indicating mixed results in revenue and profit growth [41] Important Events - The report mentions a reduction in the US LNG import tariff from 140% to 25%, enhancing the economic viability of US gas imports [42][44] - It also discusses the EU's agreement to provide greater flexibility in natural gas storage targets, allowing for a 10% deviation from the 90% storage goal [49] Investment Recommendations - The report suggests focusing on companies that can optimize costs and benefit from the ongoing price mechanism adjustments, particularly those with strong long-term contracts and flexible operations [5][35]

Core Viewpoint - The report from Dongwu Securities indicates a forecast of cooler temperatures in late August, leading to a decline in U.S. gas prices, while domestic gas prices are also expected to decrease due to slow demand recovery [1][2]. Price Tracking - As of August 15, 2025, the week-on-week changes in gas prices are as follows: U.S. HH down 8.9%, European TTF up 0.8%, East Asia JKM down 0.3%, China's LNG ex-factory price down 1.1%, and China's LNG CIF price down 3.5%, resulting in prices of 0.7, 2.8, 3, 2.8, and 2.9 yuan per cubic meter respectively, indicating a slight price inversion between domestic and international gas prices [2][3]. Supply and Demand Analysis - Weather forecasts predict cooler temperatures in late August, contributing to an 8.9% week-on-week decrease in U.S. natural gas market prices. As of August 13, 2025, the average total supply of natural gas increased by 0.2% week-on-week to 1,121 billion cubic feet per day, with a year-on-year increase of 4%. Total demand rose by 5.2% week-on-week to 1,081 billion cubic feet per day, with a year-on-year increase of 8.9% [3]. - In Europe, gas consumption from January to May 2025 was 2,180 billion cubic meters, a year-on-year increase of 6.6%. The average daily gas generation in Europe increased by 33.2% week-on-week to 862.7 GWh as of August 15, 2025 [3]. - Domestic gas prices decreased by 1.1% week-on-week, with apparent consumption from January to June 2025 down 0.2% year-on-year to 2,103 billion cubic meters, attributed to warmer winter conditions affecting heating gas demand [3]. Pricing Progress - From 2022 to July 2025, 64% (187 cities) of cities at the prefecture level and above have implemented residential pricing adjustments, with an increase of 0.21 yuan per cubic meter. The price difference for leading city gas companies is between 0.53 and 0.54 yuan per cubic meter, indicating a 10% potential for price difference recovery [4]. Pipeline Pricing Mechanism - On August 1, 2025, the National Development and Reform Commission and the National Energy Administration issued guidelines to improve the provincial natural gas pipeline transportation pricing mechanism, aiming to reduce costs for downstream users. The allowed return on pipeline assets is set to be lower than the current levels, which is expected to facilitate cost reductions for city gas companies and enhance gas supply [5]. Investment Recommendations - For 2025, the outlook suggests a relaxed supply environment and cost optimization for gas companies. Key recommendations include focusing on companies with U.S. gas sources that can mitigate tariff impacts through resale, and those involved in provincial pipeline operations facing reduced transportation fees. Recommended companies include: - New Hope Energy (dividend yield 5.2%) - China Resources Gas (dividend yield 4.5%) - Kunlun Energy (dividend yield 4.5%) - China Gas (dividend yield 5.9%) - Blue Sky Gas (dividend yield 8.8%) - Fuzhou Energy (dividend yield 3.5%) [6].

Investment Rating - The report maintains an "Overweight" rating for the gas industry [1] Core Viewpoints - The report anticipates a rise in US gas prices due to warmer temperatures in August, while domestic gas prices are expected to decline amid slow demand recovery and intensified competition between sea and land sources [5][10] - The report highlights the ongoing adjustments in pricing mechanisms and the potential for cost reductions in downstream gas companies, which may lead to improved profitability and valuation recovery [37][50] Price Tracking - As of August 8, 2025, US HH gas prices increased by 1.5% week-on-week, while European TTF prices decreased by 2.7%, and domestic LNG prices fell by 3.8% [5][10] - The average total supply of natural gas in the US decreased by 1.1% week-on-week to 1,119 billion cubic feet per day, while total demand fell by 6.5% to 1,025 billion cubic feet per day [14][27] Supply and Demand Analysis - The report notes that China's apparent natural gas consumption decreased by 0.2% year-on-year to 2,103 billion cubic feet in the first half of 2025, attributed to warmer winter conditions in 2024 affecting heating demand [27][28] - Domestic LNG import prices averaged 3,819 yuan per ton in June 2025, reflecting a 3.3% increase month-on-month but an 8% decrease year-on-year [27][31] Pricing Mechanism Progress - The report indicates that 64% of cities have implemented residential pricing adjustments, with an average increase of 0.21 yuan per cubic meter [37] - The new pricing mechanism for provincial natural gas pipeline transportation aims to reduce costs and enhance efficiency, with a permitted return rate lower than current provincial levels [50][51] Investment Recommendations - The report recommends focusing on companies that can benefit from cost reductions and pricing adjustments, such as Xin'ao Energy, China Resources Gas, and Kunlun Energy, among others [53] - It also suggests monitoring companies with quality long-term contracts and flexible scheduling capabilities, such as Jiufeng Energy and Xin'ao Shares [53]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's Q2 net profit attributable to shareholders increased by 28% year-on-year, exceeding expectations, indicating robust growth in profitability [2] - The company achieved a total revenue of 3.4 billion yuan in the first half of 2025, a year-on-year increase of 20%, with a net profit of 640 million yuan, up 30% year-on-year [2] - The company maintains a strong profit margin, with a net profit margin of 18.7% in the first half of 2025, an increase of 1.5 percentage points year-on-year [2] - The company is expected to benefit from geopolitical tensions and increased energy independence, leading to higher demand for valve procurement [3] - The company has a solid order backlog from major clients like Saudi Aramco and ADNOC, with ongoing expansion of new products and market share [3] - The 2025 stock incentive plan aims to motivate key employees and reflects the company's long-term confidence in its development [4] Financial Summary - Total revenue forecast for 2023 is 5.544 billion yuan, with a year-on-year growth of 36.59% [1] - Net profit attributable to shareholders is projected to be 721.8 million yuan in 2023, representing a year-on-year increase of 54.85% [1] - The earnings per share (EPS) for 2023 is estimated at 0.94 yuan, with a price-to-earnings (P/E) ratio of 35.39 [1] - The company expects to achieve a net profit of 1.15558 billion yuan in 2024, with a year-on-year growth of 60.10% [1] - The projected net profit for 2025 is 1.4499 billion yuan, with a growth rate of 25.47% [1]

Core Viewpoint - The report highlights concerns over natural gas supply due to ongoing geopolitical tensions, particularly between the US and Russia regarding the Ukraine conflict, leading to fluctuations in gas prices across different regions [1][2]. Price Tracking - Natural gas prices have shown varied changes: US HH prices decreased by 4.4%, while European TTF prices increased by 4.9%. The prices for East Asia JKM, China LNG ex-factory, and China LNG CIF also experienced slight increases and decreases, resulting in a price inversion between domestic and international gas prices [1][2]. Supply and Demand Analysis - The average total supply of natural gas in the US increased by 0.3% week-on-week to 1,132 billion cubic feet per day, with a year-on-year increase of 2.3%. Total demand rose by 4.6% week-on-week to 1,096 billion cubic feet per day, with significant increases in gas consumption for power generation and residential/commercial sectors [3]. - European gas prices rose by 4.9% due to concerns over potential sanctions on Russian oil exports if a ceasefire is not reached. European gas consumption is projected to be 1,920 billion cubic meters in 2025, a year-on-year increase of 7.4% [3]. - Domestic gas prices in China decreased by 1.1% week-on-week, with a slight year-on-year decline in apparent gas consumption [3]. Pricing Progress - As of 2025, 64% of cities in China have implemented residential pricing adjustments, with an average increase of 0.21 yuan per cubic meter. There remains a 10% space for price adjustment in the market [4]. Pipeline Pricing Mechanism - New guidelines for provincial natural gas pipeline transportation pricing were issued, aiming to reduce costs for downstream users. The allowed return on pipeline assets is set to be lower than current levels, which is expected to facilitate cost reductions for city gas companies [5]. Investment Recommendations - The outlook for 2025 suggests a relaxed supply environment and cost optimization for gas companies. Key recommendations include focusing on companies with US gas sources and those involved in provincial pipeline operations. Specific companies highlighted include Xinao Energy, China Resources Gas, and Kunlun Energy, among others [6].

Investment Rating - The report maintains an "Accumulate" rating for the gas industry [1] Core Insights - The ongoing concerns regarding the ceasefire timeline in the Russia-Ukraine conflict have led to supply worries, resulting in a rise in European gas prices [1] - Domestic natural gas pipeline pricing mechanisms have been released, which are expected to lower costs and increase volume for urban gas companies [1] Price Tracking - As of August 1, 2025, the week-on-week changes in gas prices are as follows: US HH -4.4%, European TTF +4.9%, East Asia JKM +1.1%, China LNG ex-factory -1.1%, and China LNG CIF +5.1% [10][11] - The domestic and international gas price disparity is noted, with domestic prices showing a decline [10][11] Supply and Demand Analysis - The average total supply of natural gas in the US increased by 0.3% week-on-week to 1,132 billion cubic feet per day, while total demand rose by 4.6% to 1,096 billion cubic feet per day [14] - In Europe, natural gas consumption for the first four months of 2025 was 192 billion cubic meters, a year-on-year increase of 7.4% [17] - Domestic natural gas apparent consumption in China decreased by 0.2% year-on-year to 210.3 billion cubic meters for the first half of 2025 [26] Pricing Progress - Nationwide pricing adjustments are gradually being implemented, with 64% of cities having undergone residential pricing adjustments, resulting in an increase of 0.21 yuan per cubic meter [35] Important Announcements - The National Development and Reform Commission and the National Energy Administration issued guidelines to improve the pricing mechanism for provincial natural gas pipeline transportation, aiming to facilitate high-quality industry development [48][49] Investment Recommendations - The report suggests focusing on companies that can optimize costs and benefit from the new pricing mechanisms, particularly recommending New Hope Energy, China Resources Gas, and Kunlun Energy among others [1]

Investment Rating - The report maintains an "Accumulate" rating for the gas industry, specifically recommending New Hope Holdings for its stable profits and high dividend yield [1]. Core Insights - The report highlights that the cooling temperatures in the US have led to a decrease in gas prices, while European storage efforts are also contributing to price declines. Domestic gas prices are showing weakness [1][10]. - It emphasizes the importance of monitoring companies with stable profits and high dividends, particularly New Hope Holdings, which is expected to see significant improvements in profit structure post-restructuring [1][51]. Price Tracking - As of July 25, 2025, the week-on-week changes in gas prices are as follows: US HH -11.9%, European TTF -2.9%, East Asia JKM -1%, China LNG ex-factory -0.4%, and China LNG CIF -4.7%, with prices settling at 0.8, 2.8, 3, 3, and 3 CNY per cubic meter respectively [10][11]. Supply and Demand Analysis - In the US, the average total supply of natural gas decreased by 0.2% week-on-week to 1,129 billion cubic feet per day, while total demand fell by 2.1% to 1,049 billion cubic feet per day. Year-on-year, supply is up 4.5% and demand is up 5.6% [14]. - In Europe, natural gas consumption from January to April 2025 was 1,920 billion cubic meters, a year-on-year increase of 7.4%. The average daily gas generation in Europe increased by 10.1% week-on-week and 54.3% year-on-year [16]. Pricing Progress - Nationwide, 64% of cities have implemented residential pricing adjustments, with an average increase of 0.21 CNY per cubic meter. The report suggests that there is still a 10% room for price adjustment recovery [37]. Important Events - The US LNG import tariff has been reduced from 140% to 25%, enhancing the economic viability of US gas imports [44]. - The European Parliament has agreed to provide greater flexibility regarding natural gas storage targets, allowing for a deviation of 10 percentage points from the 90% storage goal [49][50]. Investment Recommendations - The report suggests focusing on companies that can optimize costs and benefit from a relaxed pricing mechanism, particularly recommending New Hope Holdings (2025 dividend yield of 6.2%), China Gas (5.9%), and others with strong dividend yields [51].