CITIC Securities: European natural gas prices soar, heat pumps see a turning point in recovery.

According to a research report from CITIC Securities, due to the escalation of geopolitical conflicts, the impact of natural gas supply disruptions may persist in the long term. In March, European gas prices soared by 92.4%, significantly boosting the economic viability of heat pumps. Currently, the destocking of heat pumps in Europe has been basically completed, coupled with the landing of a 4.6 billion euro subsidy from the European Union and a high increase in China's exports to Europe. With the resonance of "high gas prices + policy subsidies + destocking cycle", European heat pump demand may have bottomed out and begun to rebound, ushering in a turning point in recovery.