China Resources Gas Group (1193) H2 2023 earnings summary

Executive summary

• 2023 turnover rose 7.3% to HK$101.27B; profit attributable to shareholders increased 10.4% to HK$5.22B, or 15.8% excluding the HKD/RMB appreciation impact.

• Gas sales volume grew 8.1% to 38.78B m³, while operating cash flow increased 133.4% to HK$10.16B.

Financial highlights

• Revenue was HK$101.27B (+7.3% YoY), gross profit HK$18.45B (+2.0%), operating profit HK$9.21B (+6.3%) and profit for the year HK$7.06B (+11.9%).

• Profit attributable to shareholders reached HK$5.22B (+10.4%); excluding the 4.7% average HKD appreciation against RMB, attributable profit rose 15.8% to HK$5.48B.

• EBITDA increased 9.7% to HK$13.52B; basic EPS rose 10.0% to HK$2.30.

• Proposed total DPS was HK$1.1569 (+10.2%); payout ratio was 50.3%, and 2023 DPS CAGR from 2016 was 14.4%.

Outlook and guidance

• Newly developed customers are expected to contribute over 2.8B m³ of annual gas volume; 2023 development included 2.892M new households and 2,993 new industrial customers.

• Integrated energy supply targets: 20B kWh mid-term and 80B kWh long-term, against an estimated 360GW market potential and 800B kWh demand in operating areas.

• Upstream contract coverage reached 99.3%; a 10-year PetroChina contract covers 41B m³, supporting supply security and seasonal cost stability.