The Zhitong Finance App learned that Citi released a research report saying that among the Chinese and Hong Kong utility stocks it covers, the bank is optimistic about gas companies with an upstream business layout, including Xinao Energy (02688), Kunlun Energy (00135), and Hong Kong China Gas (00003); the photovoltaic sector favors Maxwell (Maxwell) because its semiconductor equipment business share is increasing; the independent power producer sector is more optimistic about CGN Power (01816), and the profit growth in 2027 is expected to be driven by a potential rise in electricity prices in Guangdong.

In terms of natural gas, weekly gas consumption in China fell 2.6% year on year due to weak demand in the industrial, chemical and power generation sectors. Affected by the lag in rising unit gas source costs, the bank expects the unit profit margin of the retail natural gas business to narrow sequentially in the third quarter of 2026, and there is a lag period of 4 to 5 months between unit gas source costs and spot LNG prices.

On the photovoltaic side, although downstream demand is still weak, China's polysilicon and photovoltaic glass prices rose 0.2% to 0.5% from the previous week.

On the side of independent power producers (IPP), due to tight supply, spot coal prices in Qinhuangdao rose 2% month-on-month and 34.5% year-on-year to 1,038 yuan/ton. This means that the unit fuel cost for independent coal-fired power producers in China will rise year-on-year in the second half of 2026.

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