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, while gross profit rose 2.3% to HK$5.86 billion and gross margin improved to 16.7% from 15.9%.

• Profit attributable to owners was HK$1.76 billion, a decrease of 3.8% year-over-year; basic EPS was HK32.7 cents, down 3.8%.

• Free cash flow dropped 55.3% to HK$2.22 billion, reflecting tighter capital expenditure and improved receivables collection.

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

• The Group maintained 662 piped gas projects and expanded its user base despite a challenging housing market.

Financial highlights

• Turnover: HK$35.1 billion (down 2.6% year-over-year); gross profit: HK$5.86 billion (up 2.3%).

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

• Basic EPS: HK32.7 cents (down 3.8% year-over-year).

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

• Free cash flow: HK$2.22 billion (down 55.3% year-over-year).

Outlook and guidance

• Management expects macroeconomic stimulus and policy support to drive a rebound in the natural gas industry and support quality growth.

• Focus remains on progressing payment collection, growing dollar margin, cost control, and upskilling workforce.

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

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

• Dollar margin for city & township projects expected at RMB0.53/m³; new residential connections guidance: 1.2–1.4 million households.