Guoco International: Industrial and commercial clients benefit from location advantages. The first-quarter gas sales volume growth of Towngas (01600.HK) meets expectations.

According to the Securities Times app, Guozheng International Securities has released a research report stating that Gansu Baiyin and Jingyuan have great potential for growth in gas sales volume, with sufficient upstream gas sources. Tianlun Gas (01600.HK) mainly distributes its urban gas projects in Henan, Jilin, Yunnan, Shandong, Gansu and other places, and the company's industrial and commercial customers have location advantages, with relatively minimal impact from tariff fluctuations caused by international trade frictions. Gansu Province has abundant coal, oil, natural gas and renewable energy resources, and it is expected that in the future, Gansu Company will become a major growth pole for the company's gas sales business. In addition, the company annually forecasts a growth of 4%-5% in retail gas sales volume, with the first quarter sales volume expected to meet expectations, and a slight recovery in gross profit margin.