Jy Gas (1407) H1 2024 earnings summary

Executive summary

• H1 revenue fell 5.3% YoY to RMB193.629m; gross profit declined 9.4% to RMB28.074m, and net profit fell 19.1% to RMB15.6m. No interim dividend was declared.

• Profit attributable to owners was RMB15.248m, down from RMB18.723m; PNG volume was stable at 47.6m m³, but weaker industrial demand and lower non-residential prices weighed on revenue.

• Cash and bank balances were RMB225.9m against borrowings of RMB70.1m; a net cash position was maintained.

Financial highlights

• Revenue was RMB193.629m vs RMB204.539m; operating profit RMB21.363m vs RMB25.929m, and profit before tax RMB21.212m vs RMB26.501m.

• Gross profit was RMB28.074m vs RMB31.023m; gross margin 14.5% vs 15.2%.

• Profit attributable to owners was RMB15.248m vs RMB18.723m; basic and diluted EPS were RMB0.03 vs RMB0.04.

• Total period profit was RMB15.6m vs RMB19.2m; income tax expense was RMB5.639m vs RMB7.257m.

• Finance costs rose 200.0% to RMB1.5m, mainly due to higher bank borrowings and loans drawn in Dec 2023.

Outlook and guidance

• Priorities include strengthening gas safety protocols, facility inspections, staff training, emergency response and technical capability.

• Shandong’s 2025 energy plan targets natural gas at no less than 9% of provincial energy consumption; local and provincial policies support gas consumption and infrastructure.

• Non-residential PNG prices were adjusted from RMB4.5/m³ to RMB4.2/m³ effective 1 Apr 2024; the final price notice remained pending as of the announcement date.