Senton Energy Co. Ltd. A

On August 3, the gas sector rose 3.01% during the session. Shengtong Energy and Delong Huineng both surged 9.99%, while ENN Natural Gas, China Suntien Green Energy, and Jovo Energy climbed 3.20%, 3.08%, and 2.63% respectively. Orient Securities noted that undervalued utilities are showing defensive value, with assets poised for revaluation. It pointed out that amid the restructuring of the international order and rising AI-driven energy demand, utilities as key physical assets are likely to be revalued. China needs to further advance market-based electricity pricing reforms, and the upward shift in global energy price midpoints is expected to drive electricity and natural gas prices in China into a new upward cycle. TF Securities highlighted that upstream gas producers with their own resources can benefit from price elasticity, while midstream companies with flexible, resellable long-term LNG contracts can profit from the spread by reselling low-cost long-term resources as overseas natural gas prices rise.