Towngas Smart Energy Company (1083) H1 2026 earnings summary

Executive summary

• Revenue rose 9% year-over-year to HK$11,328 million (HK$11.33 billion) in 1H2026, demonstrating operational resilience amid a volatile global economy.

• Net profit from the gas business increased 7%, while renewable energy net profit declined 53%.

• Profit attributable to shareholders was HK$690 million, down 9% year-over-year, with basic EPS at 18.8 HK cents, a 14% decrease.

• Interim dividend maintained at 5 HK cents per share, with a scrip dividend option.

Financial highlights

• Gas sales volume declined 2% to 8.54 billion m³, mainly due to a mild winter and weak real estate market; city-gas customers rose to 18.66 million.

• Photovoltaic power generation increased 12% year-over-year to 1.32 billion kWh; cumulative PV grid connection reached 3.0 GW.

• Operating profit decreased 3% year-over-year to HK$992 million; core operating profit fell 4%.

• Total operating expenses rose 10% to HK$10.57 billion, mainly due to higher gas fuel and material costs.

• Share of profits from associates and joint ventures increased by 28% and 21%, respectively.

Outlook and guidance

• Full-year gas sales volume expected to rise 1% to 17.54 billion m³; city gas dollar margin to increase by 0.01 RMB/m³.

• Renewable energy targets 1 GW new PV grid-connected in 2026, aiming for 3.8 GW total; plans to add 0.8 GW in H2 2026.

• Electricity trading volume projected to reach 15.0 billion kWh (+78%).

• Per-kWh profitability in renewables expected to improve as midday valley pricing pressure eases.

• Focus on AI integration, cash flow optimisation, and sustainable profit growth.