CHINA_20231227_0537

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MDecember27,202305:37AMGMTUpdateChinaResourcesGasGroupLtdAsiaPacificMorganStanleyAsiaLimited++8523963-3610+8522848-6964TakeawaysfromChongqingAlbertLi+8523963-1925ReverseRoadshowEquityAnalystWevisitedChongqingGas,CRGas'associatecompanyandtwoAlbert.Li@morganstanley.comofthedistributedenergyprojectsinthecity(oneforBOETechnologyandoneforalocalhospital)beforeChristmas.EvaHouManagementalsosharedrecentgasindustrydevelopments.EquityAnalystKeyTakeawaysEva.Hou@morganstanley.comThecontractedgaspricefromPetroChinais5-10%higherthiswinterYoY,JennyYuwhereasoverallgascostislowerYoY.ResearchAssociateNon-contractedgasvolumeisexpectedtobesignificantlylowerYoY.Jenny.Yu1@morganstanley.comTherecentcoldweatherwasunexpected,butCRGasisstillconfidentofMorganStanleyappreciatesyoursupportinachievingDMtargetofRmb0.5/cbm.the2024InstitutionalInvestorAll-AsiaResearchTeamSurvey.VotingwillopenChongqingisoneoftheprovinceswithagascostadvantagetodevelopearlyJanuary2024.distributedenergyprojects.ChinaResourcesGasGroupLtd(1193.HK,1193HK)Recentvolume/DMdevelopment:GasvolumeforJan-Novgrew7.8%YoY,residentialgrew11%,industrialgrew7%whilecommercialwasup8.7%YoY.AsforChinaUtilitiesChinadollarmargin(DM),Jan-NovwasRmb0.52-0.53/cbm,downfromRmb0.54-0.55/cbmforJan-Oct,implyingaquickretreatinNovemberDMduetowinterheating.StockRatingOverweightExcludingM&Acontrib...

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