汇丰银行-中国-燃气公用事业-发改委下调城市燃气价格-20170831-china gas utilities ndrc cuts gas prices at the city-gate-hsbc

《汇丰银行-中国-燃气公用事业-发改委下调城市燃气价格-20170831-china gas utilities ndrc cuts gas prices at the city-gate-hsbc》由会员上传分享，免费在线阅读，更多相关内容在行业资料-天天文库。

1、Flashnote31August2017ChinaGasUtilitiesEQUITIESUTILITIESNDRCcutsgaspricesatthecity-gateChinaNDRCannouncedthatcity-gategaspricefornon-residentialEvanLicustomerswillbereducedbyRMB0.1/cmfrom1SepHeadofUtilities&AlternativeEnergyResearch,APACTheHongkongandShanghaiBankingCor

2、porationLimitedevan.m.h.li@hsbc.com.hkLowergaspriceshoulddriveupgasdemand+85229966619SimonFangReiterateourpositiveviewonChinagasutilities;wepreferAssociateTheHongkongandShanghaiBankingCorporationLimitedTowngasChinaandENNEnergy(bothratedBuy)simon.w.fang@hsbc.com.hk+852291

3、49973Gascostatthegatewillbecut:China’sNationalDevelopmentandReformCommission(NDRC)announcedthatwholesalenaturalgaspricesatthecity-gateforEmployedbyanon-USaffiliateofHSBCSecurities(USA)Inc,andisnotregistered/qualifiedpursuanttoFINRAregulationsnon-residentialcustomerswillbec

4、utbyRMB0.1percubicmeter(cm),implying5-9%dependentonlocation,starting1Sep2017.Accordingtotheannouncement,thisistoreflectthereductionin1)VATreductionforoilandgasproductsannouncedinMay2017,from13%to11%;and2)lowertransmissionfeesfollowingthenewpricingregulationforlong-distance

5、pipelinesinthemid-streaminOct2016,whicheffectivelycutsthewholesalecostsfordownstreamdistribution.Pricecuttofurtherdriveupgasdemand:Ifweassumegasutilitiessharethewholecostreductionwiththeircustomers,retailgaspricescouldbeloweredby4-6%onaverage,atalevelthatisonparwithfueloil

6、ormorethana20%discountagainstimportedLPG.Lowerpriceswouldlikelysupportvolumegrowth.Gasdemandgrowthhasacceleratedto16.2%YoYfor7M17(2016:+7%),drivenbythewarmingupofindustrialactivityandincrementaldemandfromthegovernment’senergyconversioninitiativefromcoaltogas.Listedgasdistr

7、ibutorshavealsoreportedsalesvolumegrowthof18-27%YoYfor1H17,beatingtheirpreviousguidance.Temporarycity-gategaspricehikeislikelyinwinter:Duetopotentiallytightsupplyofgasduringthewinter(i.e.NovtoMar),city-gatepricesmaybehikedonatemporarybasis,giventhatNDRCallowswholesaleprice

8、stofloatupto120%oftheprovincialbenchmark.Upstreamgassuppliershadraisedpricesby10%duringla