Beijing Enterprises (392) H2 2023 earnings summary

Executive summary

• 2023 revenue rose 3.7% to RMB82.313bn; EBITDA increased 1.1% to RMB14.018bn and EBIT rose 0.8% to RMB9.912bn. Profit for the period fell 9.9% to RMB6.401bn.

• Profit attributable to shareholders declined 15.6% to RMB5.498bn; excluding one-off items, it fell 31.1% to RMB4.878bn. EPS was RMB4.36, down 15.7% YoY.

• Performance varied by business: beer and water reported higher earnings, while environmental operations faced cost pressure and China Gas profit attributable declined.

Financial highlights

• Revenue reached RMB82.313bn, up 3.7%; gross profit was RMB10.729bn, up 1.5%.

• EBITDA increased 1.1% to RMB14.018bn; EBIT increased 0.8% to RMB9.912bn.

• Profit for the period was RMB6.401bn, down 9.9%; profit attributable to shareholders was RMB5.498bn, down 15.6%.

• Annual dividend per share remained HKD1.6; dividend payout ratio rose 6.4 ppts to 33.1%.

• Total assets increased 5.1% to RMB204.455bn.

Outlook and guidance

• China Gas FY2023/24 guidance: gas sales dollar margin RMB0.52/m³, low-single-digit urban project volume growth, 1.5–1.7m new residential users, 10% value-added business GP or PBT growth, 4.5m tons LPG sales and 5%–10% core profit growth.

• Beijing Gas priorities include advancing Nangang LNG phases II and III, stabilizing Beijing distribution performance, expanding markets outside the capital and growing integrated energy, hydrogen, renewable power and storage businesses.

• BE Water prioritizes receivables collection, disposal of non-core and underperforming assets, project exits, improving existing asset operations and personnel efficiency.

• Environmental operations aim to raise utilization and energy conversion efficiency, expand collaborative sludge treatment and heat and gas supply, control costs and bring projects under construction into operation.

• Yanjing Beer targets U8 as a million-ton single product by the end of the 14th Five-Year Plan and plans further digital, supply-chain and market-oriented reforms.