Zhongyu Energy (3633) H1 2024 earnings summary

Executive summary

• Turnover rose 3.3% year-over-year to HK$7,255.1 million for the six months ended 30 June 2024, with profit attributable to owners up 1.4% to HK$239.1 million.

• Basic and diluted EPS increased to HK8.57 cents from HK8.34 cents year-over-year.

• The Group maintained 75 gas projects with exclusive rights in the PRC, with a 4.1% increase in connectable population and residential households.

• Sales of gas remained the largest revenue contributor, while smart energy saw significant growth.

Financial highlights

• Gross profit margin declined to 14.0% from 17.5% due to lower margins in gas sales and vehicle filling stations.

• Net profit margin was 3.3% (2023: 3.4%).

• Net assets value per share rose to HK$2.78 (31 Dec 2023: HK$2.76).

• Finance costs rose 16.3% to HK$277.4 million, mainly from higher effective interest rates.

• No interim dividend declared for the period.

Outlook and guidance

• The Group will focus on cost optimization, expanding smart energy, and enhancing safety and digital management.

• Plans include further integration of city gas and smart energy, expansion of value-added services, and exploring international LNG trading and green finance.