China Resources Gas Group (1193) H1 2024 earnings summary

Executive summary

• Revenue for 1H2024 rose 7.7% to HK$52.08 billion, with gross gas sales volume up 5.3% to 20.90 billion m³ and 1.03 million new residential and 25,000 new industrial/commercial users connected.

• Profit attributable to owners was HK$3.46 billion, down 2.5% year-over-year, and basic EPS decreased 2.6% to HK$1.52.

• Free cash flow surged 562.3% to HK$1.9 billion; operating cash flow reached HK$4.25 billion.

• Interim dividend increased 66.7% to HK$0.25 per share, payable in HKD or RMB.

• The Group maintained a strong market position with 276 city gas projects across 25 provinces, serving 58.84 million customers.

Financial highlights

• Gross profit increased 9.7% to HK$9.67 billion, with gross profit margin up to 18.6%.

• Net profit margin attributable to owners declined to 6.6%; net profit for the period was HK$4.49 billion, down 1.4% year-over-year.

• Bank and cash balance rose 15.9% to HK$11.57 billion; total borrowings reached HK$28.16 billion.

• CAPEX for pipeline and related facilities was HK$2.31 billion, down 47.3%.

• Debt to capitalization ratio at 30.3%; gearing ratio at 20.2%; financing cost at 2.4% p.a.

Outlook and guidance

• Focus on optimizing price management, expanding dual-comprehensive businesses, and promoting regional integration for sustainable growth.

• Continued investment in integrated energy, clean energy solutions, and new business incubation in hydrogen, carbon trading, and storage.

• Leverage favorable macroeconomic and industry trends, supported by national policies and urban development.

• Emphasis on operational safety, ESG leadership, and customer service enhancement.