China Resources Gas Group (1193) H2 2024 earnings summary

Executive summary

• Achieved steady growth in 2024 with revenue up 1.4% to HK$102.68B and stable core profit, despite property market adjustments and a warm winter.

• Net profit attributable to owners fell 21.7% to HK$4.09B due to lower non-core gains.

• Maintained leading credit ratings and increased dividend payout ratio to 53%, delivering stable returns to shareholders.

• Continued expansion in city gas, comprehensive services, and integrated energy, supported by the "1+2+N" strategy.

• Final dividend proposed at HK$0.70 per share, total 2024 distribution at HK$0.95 per share, up 3.4%.

Financial highlights

• Turnover reached HK$102.68B, up 1.4% year-over-year; core profit was HK$4.148B, up 0.02%.

• Gas sales volume grew 2.9% to 39.91B m³; number of customers increased 4.9% to 60.624M.

• Free cash flow rose 14.2% to HK$2.58B; capital expenditures decreased 44% to HK$4.42B.

• Gross profit margin was 17.8%, down 0.4 ppt year-over-year due to a lower share of higher-margin gas connection revenue.

• Basic EPS was HK$1.80, down from HK$2.30 in 2023.

Outlook and guidance

• 2025 gas sales volume expected to grow 4.0%-5.0%; new residential connections 2.30-2.50M.

• Unit gas margin guidance at RMB0.54/m³; comprehensive services and integrated energy sales to grow 20%-30%.

• Recurring CAPEX planned at HK$4.0-4.5B, strategic CAPEX at HK$0.5B; aim to increase dividend amount or payout ratio.

• Expects continued growth in natural gas demand, supported by China’s green transformation policies.

• Plans to enhance industrial control, invest in high-quality projects, and increase comprehensive service penetration.