CHINA GAS HOLDINGS (384) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2024 was HK$35.1 billion, down 2.6% year-over-year; gross profit rose 2.3% to HK$5.86 billion and gross margin improved to 16.7% from 15.9%.

• Profit for the period was HK$2.26 billion, up 7.4%, while profit attributable to owners fell 3.8% to HK$1.76 billion; basic EPS was HK32.7 cents, down 3.8%.

• Free cash flow was HK$2.22 billion, reflecting strong cash generation but a 55.3% year-over-year decline due to tighter capital expenditure and improved receivables collection.

• Interim dividend per share was HK15.0 cents, unchanged from the prior year.

• Value-added services revenue grew 11.6% to HK$2.01 billion, with operating profit up 15.4%.

Financial highlights

• Gross profit rose 2.3% to HK$5.86 billion; gross margin improved to 16.7%.

• Net profit for the period was HK$2.26 billion (up 7.4%); profit attributable to owners was HK$1.76 billion (down 3.8%).

• Free cash flow was HK$2.22 billion; net operating cash flow at HK$3.68 billion.

• Net gearing ratio at 0.78 (improved from 0.79); current ratio at 0.99.

• Finance costs decreased 16.7% to HK$828.7 million.

Outlook and guidance

• Dollar margin for city & township projects expected at RMB0.53/m³, with city & township gas sales volume growth projected at over 2%.

• CapEx guidance for FY 2024-2025 is HK$3–3.5 billion, a significant reduction from last year.

• Focus remains on payment collection, margin expansion, cost control, and workforce upskilling.

• Expansion in value-added services, integrated energy, and digital transformation are key growth drivers.

• Continued implementation of price pass-through mechanisms and cost reviews to support stable returns.