CHINA GAS HOLDINGS (384) H2 2024 earnings summary

Executive summary

• Net operating cash flow reached HK$11.34 billion, up 13.1% year-over-year, and free cash flow surged 70.2% to HK$4.29 billion.

• Revenue declined 11.5% year-over-year to HK$81.41 billion, with profit attributable to owners down 25.8% to HK$3.18 billion.

• Adjusted net profit attributable to owners was HK$3.97 billion, down 4.3% year-over-year, with core profit stable excluding FX and one-off items.

• Dividend payout ratio remained high at 84.7%, with annual DPS of HK50 cents per share.

Financial highlights

• Gross profit decreased 6.1% year-over-year to HK$11.3 billion, with margin improving to 13.9% from 13.1%.

• Natural gas sales revenue fell 8.9% to HK$52.44 billion; LPG sales revenue dropped 20.1% to HK$17.98 billion.

• Value-added services revenue grew 5.8% to HK$3.65 billion, with operating profit up 5.7%.

• Net gearing ratio rose to 0.79 from 0.76 year-over-year.

• Finance costs increased 14.4% to HK$2.12 billion due to higher average financing costs.

Outlook and guidance

• Dollar margin for city & township projects expected at RMB0.53/m³ for FY2024/25.

• Sales volume growth in city & township gas projected at 5%+; new residential connections expected at 1.2–1.4 million households.

• Value-added services gross profit or profit before tax expected to grow 10%+.

• Focus on high-quality development, safety management, and digital transformation to enhance operational efficiency.

• Anticipates further price reforms and cost-effectiveness from global LNG supply increases.