Jy Gas (1407) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 8.2% to RMB370.4m, while net profit rose 19.8% to RMB30.2m and net margin improved to 8.2% from 6.3%.

• Profit growth reflected lower prior-year incident-related costs, 2024 insurance compensation and a gain on the sale of Seacon shares; underlying demand remained pressured by slower industrial activity and weaker property markets.

Financial highlights

• Revenue was RMB370.4m, down 8.2% YoY; gross profit was RMB57.8m, down 10.9%, with gross margin at 15.6% versus 16.1%.

• Operating profit increased to RMB42.6m from RMB34.3m; profit before tax was RMB41.4m versus RMB36.1m, and net profit was RMB30.2m versus RMB25.2m.

• Profit attributable to owners rose 22.4% to RMB30.0m; basic and diluted EPS was RMB0.07 versus RMB0.06.

• Administrative expenses declined 14.8% to RMB22.4m; net impairment provision fell to RMB0.04m from RMB2.9m, while other income increased 53.8% to RMB6.0m.

• Finance costs rose to RMB3.1m from RMB0.6m, mainly due to increased bank borrowings; income tax expense was RMB11.2m and effective tax rate 27.1% versus 30.2%.

Outlook and guidance

• Natural gas demand is supported by PRC low-carbon policies and Gaomi City clean-energy initiatives; the strategy includes government-subsidised projects to extend rural access to gas.

• Priorities include expanding the pipeline network, completing clean-energy projects and strengthening operational safety inspections, technical capability and customer safety training.

• The PNG concession covers an operating area equal to ~70% of Gaomi City and runs through August 2039; the network expansion supports a steadily growing customer base.