Gas and Water Industry Weekly: Linyi Natural Gas Price Readjustment

Main points

    In the last period (20200824 -- 20200828), the gas index fell 2.91%, the water index fell 0.19%, the CSI 300 index rose 2.66%, the gas index was 5.57 percentage points lower than the CSI 300 index, and the water index was 2.85 percentage points lower than the CSI 300 index.

    In terms of individual stocks, the share price shows up and down. Among them, Zhonghuan Environmental Protection (10.40%), * ST Zhongtian (5.23%) and Baichuan Energy (3.48%) performed well, while Qianjiang Water Resources (-8.25%), Xinjiang Torch (-7.98%) and Xintian Lvneng (-7.15%) performed poorly.

    Investment suggestions:

    In the next 12 months, maintain the "overweight" rating of the gas and water industry, with the adjustment of the energy structure and the strengthening of environmental protection, to form a long-term good for the industry.

    Maintain the investment rating of "overweight" in the gas industry. Pay attention to the change of natural gas supply and demand.

    As an important resource related to people's life and social development, water resources are limited by water resources, and the increase of new water supply capacity is limited in the future. We expect that the tap water business will maintain a stable growth, and the sewage treatment business will have a large development space driven by policies. Maintain the investment rating of "overweight" in the water industry.