Core Viewpoint - The global shipping industry is focusing on achieving net-zero carbon emissions by 2050, with green methanol emerging as a key fuel choice for decarbonization efforts [1][3]. Group 1: Green Methanol Production - Green methanol is produced from renewable resources such as biomass and urban waste, significantly reducing greenhouse gas emissions compared to traditional fossil fuels [3]. - The production facility of the company in Ordos, Inner Mongolia, has received a carbon footprint verification statement from TüV Süd, making it the first green methanol project to achieve this certification [2][3]. Group 2: Certification and Market Position - The certification helps the company better understand its greenhouse gas emission sources, amounts, and potential risks, allowing for the discovery of more cost-effective emission reduction solutions [5]. - The company has also achieved dual international certifications ISCC EU and ISCC PLUS, reinforcing its position as a leading green methanol producer in Asia [5]. Group 3: Industry Impact and Future Plans - TüV Süd highlighted that the company's green methanol production process meets international carbon reduction standards and has significant low-carbon benefits, setting a benchmark for green methanol development in China and Asia [5]. - The company aims to continue its commitment to green development and deepen cooperation with international organizations like TüV Süd to promote low-carbon transformation in the industry [5].

Core Viewpoint - Hong Kong and China Gas Company Limited's subsidiary, Mingqi Tong Telecommunications Limited, has signed a memorandum of cooperation with Ant Group's Ant Digital Technology to explore the integration of AI technology in enhancing data center services and developing solutions in the Real World Assets (RWA) sector [1][2]. Group 1: Partnership Details - The collaboration aims to leverage AI capabilities to improve data center services, focusing on areas such as Internet Data Center (IDC) RWA cooperation and AI transformation for the gas company's related businesses [1][2]. - A joint team will be established to oversee the progress of the collaboration, highlighting the increasing importance of AI and Web3 technologies in transforming traditional infrastructure services [1][4]. Group 2: Future Plans - The partnership plans to deepen cooperation across the gas company's seven business segments, which include urban gas operations in Hong Kong and mainland China, water and environmental services, renewable energy, B2C extensions, green methanol, and sustainable aviation fuel (SAF) [2]. - The gas company intends to adopt AI to enhance internal management and establish an integrated control system across finance, human resources, procurement, operations, and master data [2].

Investment Rating - The report maintains a positive outlook on the power and natural gas sectors, indicating a favorable investment environment for renewable energy and gas companies [2][10]. Core Insights - The Shandong provincial government has introduced its first local guidelines for the marketization of renewable energy pricing, which is expected to stabilize returns for existing projects and provide a model for other provinces [5][7]. - Global natural gas prices have seen a slight rebound due to tightening supply and increased demand for LNG exports, with specific price movements noted in various regions [10][19]. - The report highlights the potential for LNG import prices to decrease further in the second half of 2025, benefiting downstream gas companies [11][29]. Summary by Sections 1. Power Sector: Shandong's New Energy Market Guidelines - Shandong's new energy pricing reform outlines that existing projects will participate in market pricing at a rate of 0.3949 yuan per kWh, aligning with the provincial coal benchmark price [5][6]. - The guidelines emphasize strong connectivity with existing policies, ensuring stability for existing projects while introducing competitive elements for new projects [6][7]. - The implementation of these guidelines is expected to serve as a model for other provinces, enhancing the operational efficiency and market strategies of renewable energy companies [7][8]. 2. Natural Gas: Global Demand and Price Rebound - As of May 9, 2025, the Henry Hub spot price in the U.S. was $3.22/mmBtu, reflecting a weekly increase of 3.84%, while European prices also saw a rise due to supply constraints and seasonal demand [10][19]. - The report notes that the overall LNG import cost in China has remained below 4000 yuan per ton, with a significant decrease of 18.4% from the year's peak [11][29]. - The anticipated decline in international oil prices is expected to further lower LNG import prices in China, benefiting city gas companies [11][29]. 3. Weekly Market Review - The public utilities, environmental protection, power equipment, and gas sectors outperformed the Shanghai and Shenzhen 300 index during the review period [35]. 4. Company and Industry Dynamics - Recent developments include the issuance of competitive configuration announcements for renewable energy projects in various provinces, indicating ongoing investment and growth in the sector [44][46]. - The report also highlights significant corporate announcements, including financing and profit distribution plans from key players in the energy sector, reflecting a proactive approach to capital management and shareholder returns [48][49].

Core Insights - The TERA-Award has achieved record participation with 785 submissions from 76 countries, highlighting a global push for climate tech solutions [1][2][3] - The competition focuses on six categories, with Renewable Energy being the most prominent, showcasing innovations in green fuels, hydrogen technology, smart energy systems, and sustainable infrastructure [2][3] - The TERA-Award serves as a global platform for energy innovation, with significant contributions from the US (12.5%), UK (6.2%), India (8.7%), China (18.1%), and Hong Kong (5.5%) [3] Industry Impact - The TERA-Award not only offers a US$1 million grand prize but also has a history of transforming innovative ideas into commercial products, as seen with previous participants like i2Cool and Luquos Energy [4][5] - The competition is backed by industry leaders such as Towngas, providing participants with access to resources that can be more valuable than monetary awards [7] - The judging phase will be led by Professor Cui Yi, focusing on technological innovation, commercial viability, scalability, and potential global impact [6] Future Outlook - Winners will be announced in July 2025, with expectations that the competition will continue to discover promising energy startups to combat the climate crisis [11]

Financial Performance - The group's revenue for 2024 was HKD 55,473 million, a decrease of 3% compared to HKD 56,971 million in 2023[20] - Shareholders' profit attributable for 2024 was HKD 5,712 million, down 6% from HKD 6,070 million in 2023[20] - The diluted earnings per share for 2024 was HKD 0.301, a decrease of 5% from HKD 0.316 in 2023[20] - The group's total revenue for the year was HKD 55.473 billion, with core business profit increasing by 5% to HKD 5.955 billion[35] - The group's attributable profit, before property revaluation, was HKD 5.668 billion, up 2%[35] - The group achieved a basic earnings per share of HKD 0.306, with a proposed final dividend of HKD 0.23 per share, totaling HKD 0.35 per share for the year[36] Customer Growth - The number of customers in Hong Kong as of December 31, 2024, was 2,037 thousand, an increase of 1% from 2,020 thousand in 2023[20] - The number of customers in mainland cities as of December 31, 2024, was 42,491 thousand, reflecting a growth of 6% from 40,186 thousand in 2023[20] - The group reported a total of 12,825 shareholders as of December 31, 2024, down 3% from 13,177 in 2023[20] Gas Sales and Operations - The group maintained a consistent gas sales volume in Hong Kong at 27,159 TJ, slightly up from 27,125 TJ in 2023[20] - In Hong Kong, gas sales volume remained stable with a slight increase of 0.1%, driven by more local restaurants switching to gas stoves[37] - Industrial gas sales volume increased by 2% overall, with hotel-related gas sales rising by 6.6%, while residential gas sales slightly decreased by 1.4%, resulting in an overall gas sales volume increase of 0.1%[88] - The group achieved a gas supply reliability rate of 99.992%, with 100% of customers notified three days in advance of any supply interruptions[97] Renewable Energy Initiatives - The group operates over 1,000 renewable energy projects across 24 provincial cities in mainland China, with distributed photovoltaic capacity reaching 2.3 GW and generating 1.83 billion kWh[41] - The renewable energy business achieved a net profit of HKD 479 million in 2024, representing a fivefold year-on-year growth, with over 1,000 renewable energy projects across 24 provinces[137] - The group has developed 128 zero-carbon smart parks across various regions, contributing to carbon neutrality goals and generating positive economic benefits[143] - The group is committed to gradually introducing zero-carbon fuels to replace fossil fuels, aiming for carbon neutrality in the long term[98] Strategic Development and Investments - The group aims to develop into a leading green smart energy enterprise, focusing on sustainable energy solutions[7] - The group plans to invest RMB 10 billion to develop a green methanol production facility with an annual capacity of 1 million tons, with construction expected to start in mid-2025[44] - The group has signed distribution cooperation agreements for green methanol with multiple companies, enhancing its supply chain capabilities[152][153] - The group has established a long-term agreement for the import of 1.5 million tons of liquefied natural gas annually through its Hong Kong international trade platform, enhancing resource security and flexibility[133] Technological Innovation - The company aims to strengthen its digital systems, including enhancing the capabilities of its AIoT platform to fully leverage data value[51] - The company will continue to embrace technological innovation, hosting the TERA-Award Smart Energy Innovation Competition to discover more zero-carbon projects and accelerate the commercialization of research outcomes[51] - The "Kwang Wah Chip" developed in collaboration with Sai Fang Technology has achieved a cumulative shipment of over 3.85 million units by the end of 2024, expanding its application from smart gas meters to various scenarios including smart kitchens and safety homes[174] Corporate Governance and Leadership - The company is committed to corporate governance and transparency, as evidenced by its diverse and experienced board composition[62] - The company has a diverse board with members holding various prestigious honors and extensive industry experience[63] - The board includes independent directors with significant contributions to the financial and educational sectors[64] - The company appointed Professor Huang as an independent non-executive director effective June 2024, bringing extensive experience from major financial institutions[67] Community Engagement and Social Responsibility - The group has provided over 1 million service hours and benefited over 8.5 million individuals through its "Gas Warmth Volunteer Team" since its establishment in 1999[194] - The group continues to support the government's "Co-Creating Bright 'Teen' Program" and has participated in the "Corporate Internship Program" for four consecutive years[195] - The "Gas Discount Program" has benefited over 40,000 households in Hong Kong, with a total amount exceeding HKD 36 million[178] Environmental and Sustainability Efforts - The company has achieved a 9% reduction in greenhouse gas emissions compared to the 2020 baseline[179] - The group actively promotes clean energy applications, including green methanol, hydrogen energy, and sustainable aviation fuel, in response to national carbon neutrality goals[187] - The group has successfully issued a green asset-backed securities plan worth 515 million RMB, receiving 2.5 times subscription, marking a significant milestone in the market[143] Future Outlook - The company anticipates stable growth in gas sales in Hong Kong, driven by the recovery of the tourism industry and the "High Talent Pass" program, which is expected to bring in tens of thousands of people[49] - The group plans to provide 500,000 tons of green methanol annually by 2028, with production capacity expected to increase to 150,000 tons by the end of 2025[151] - The new production facility in Johor, Malaysia is expected to commence operations in the second half of 2025, adding an annual capacity of 300,000 tons[150]

香港中华煤气作为具国际可持续发展与碳认证(ISCC)绿色甲醇的领先供应商，公布将向新加坡船用燃料供应商Golden Island Pte Ltd(Golden Island)供应香港中华煤气的绿色甲醇，应用于其新加坡燃料加注业务。这标志着香港中华煤气拓展亚洲地区 绿色甲醇供应网络的重要一步。 根据有关供应协议，香港中华煤气将向Golden Island最近于新加坡注册的燃料供应船"Golden Antares号"，供应获ISCC EU及 ISCC PLUS双重国际认证的绿色甲醇。该船预计于4月下旬由中国船厂交付，在装载由香港中华煤气生产的绿色甲醇后，将 于2025年7月返回新加坡并展开绿色甲醇燃料加注试运行。 "Golden Antares号"配备质量流量计，可运载多达6,500吨甲醇。该艘货船将运载一批绿色甲醇到新加坡一个码头，之后按新 加坡最新颁布的《甲醇燃料加注技术参考标准129》(TR 129)进行加注。TR 129为如何安全、高效地使用甲醇这种船用替代 燃料，建立了完备的参考框架。 对于是次采购交易协议，香港中华煤气营运总裁—绿色燃料及化工岑文辉表示："我们高兴看到公司的绿色甲醇业务在亚洲 区市场取 ...

Core Viewpoint - The domestic green methanol refueling business has made significant progress, with Hong Kong and China Gas Company successfully completing a large-scale refueling operation for the Korean vessel "HMM Green" using green methanol produced in Inner Mongolia, marking a milestone in the green energy sector in Asia [1][2]. Group 1: Production and Certification - The green methanol was produced by the company in its facility located in Ordos, Inner Mongolia, utilizing biomass resources and urban waste, and has achieved ISCC-EU certification, demonstrating a 70% reduction in greenhouse gas emissions over its lifecycle [1][3]. - The company has been awarded the EU ISCC EU and ISCC PLUS international certifications for three consecutive years since 2022, making it the first enterprise in mainland China to achieve these certifications for large-scale green methanol production [3]. Group 2: Industry Context and Future Outlook - In line with global carbon neutrality goals, the latest strategy for reducing greenhouse gas emissions from shipping aims for a 20% reduction by 2030 and a 70% reduction by 2040 compared to 2008 levels, positioning green methanol as a preferred option for the shipping industry to lower emissions [3]. - The company plans to continue collaborating with various partners to advance the research and production of green methanol, contributing to the popularization of green energy and the sustainable development of the global shipping industry, with a projected production capacity of 150,000 tons by 2025 [3].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 7.04 [7][24]. Core Insights - The company reported a core profit growth of 5% for 2024, driven by structural upgrades in green energy, despite a revenue decline of 3% to HKD 55.5 billion [1][5]. - The gas sales volume in Hong Kong remained stable, with a slight increase of 0.1% year-on-year, while the company expects to benefit from a favorable pricing mechanism [2][3]. - The renewable energy and green energy sectors show significant growth potential, with net profit from renewable energy reaching HKD 322 million, a 544% increase year-on-year [4][5]. Summary by Sections Financial Performance - For 2024, the company reported revenues of HKD 55.5 billion, a decrease of 3% year-on-year, and a core profit of HKD 5.95 billion, an increase of 5% year-on-year [1][6]. - The net profit attributable to shareholders was HKD 5.71 billion, down 6% year-on-year [1][6]. Gas Sales - The gas sales volume in Hong Kong was 27,159 TJ, with residential gas volume decreasing by 1.4% and commercial/industrial gas volume increasing by 1.4% and 5.2% respectively [2][3]. - The company anticipates stable gas sales in Hong Kong for 2025, maintaining an EBITDA margin of approximately 52% [2][3]. Renewable Energy Growth - The renewable energy segment is expected to grow rapidly, with the company shifting towards a light-asset strategy, projecting significant revenue growth from carbon services and asset management [4][5]. - The green energy business, including green methanol and sustainable aviation fuel (SAF), is strengthening its capacity to capture future demand [4][5]. Profit Forecast Adjustments - The profit forecasts for 2025 and 2026 have been adjusted downwards by 6% and 9% respectively, with expected net profits of HKD 6.24 billion and HKD 6.56 billion [5][24]. - The target price has been revised down to HKD 7.04 from HKD 7.63, reflecting a price-to-book ratio of 2.3x for 2025 [5][24].

Investment Rating - The report maintains a "Buy" rating for Hong Kong and China Gas Company Limited [1] Core Views - The company's core profit is steadily recovering, and growth in green energy is expected [1] - The company reported a total revenue of HKD 55.473 billion for 2024, a decrease of 2.6% year-on-year, while the attributable net profit was HKD 5.712 billion, down 5.9% [5] - The core profit for the year was HKD 59.55 billion, reflecting a year-on-year increase of 5.1%, aligning with expectations [5] - The company plans to distribute a final dividend of HKD 0.23 per share, resulting in a total dividend of HKD 0.35 per share for the year, yielding a dividend rate of 5.31% based on the closing price on March 19 [5] Financial Data and Profit Forecast - Revenue (in million HKD) is projected as follows: 2023: 56,971, 2024: 55,473, 2025E: 55,525, 2026E: 57,637, 2027E: 59,285 [2] - Attributable net profit (in million HKD) is forecasted as: 2023: 6,070, 2024: 5,712, 2025E: 6,131, 2026E: 6,543, 2027E: 6,911 [2] - The net asset return rate is expected to improve from 8.55% in 2023 to 9.61% in 2027 [2] - The price-to-earnings ratio is projected to decrease from 20.3 in 2023 to 17.8 in 2027 [2] Business Performance - The Hong Kong gas sales volume for 2024 is expected to be 27,159 TJ, with a slight increase of 0.1% year-on-year [5] - The company has increased its maintenance fees and basic pricing, indicating a strong pricing power in the Hong Kong market [5] - The mainland gas sales volume is projected to reach 36.36 billion m³ in 2025, with a year-on-year growth of 4.8% [5] - The gross margin for city gas sales is expected to improve, with a target of 0.54 HKD/m³ for 2025 [5] Renewable Energy Growth - The company's photovoltaic power generation is expected to increase by 95% to 1.83 billion kWh in 2024, with net profits from renewable energy activities reaching HKD 4.79 billion [5] - The company is expanding its green methanol production capacity by 50% to 150,000 tons in Inner Mongolia [5] Conclusion - The report concludes that the company's core profit is steadily increasing, and the overall business performance is stable, maintaining a "Buy" rating [5]

Investment Rating - The report maintains a "Buy" rating for Hong Kong and China Gas Company Limited [1] Core Views - The company's core profit is steadily recovering, and growth in green energy is expected [1] - The company reported a total revenue of HKD 55.473 billion for 2024, a decrease of 2.6% year-on-year, while the attributable net profit was HKD 5.712 billion, down 5.9% [5] - The core profit for the year was HKD 59.55 billion, reflecting a year-on-year increase of 5.1%, aligning with expectations [5] - The company plans to distribute a final dividend of HKD 0.23 per share, resulting in a total dividend of HKD 0.35 per share for the year, yielding a dividend rate of 5.31% based on the closing price on March 19 [5] Financial Data and Profit Forecast - Revenue (in million HKD) is projected as follows: - 2023: 56,971 - 2024: 55,473 - 2025E: 55,525 - 2026E: 57,637 - 2027E: 59,285 - Year-on-year growth rates for revenue are expected to be: - 2023: -6.5% - 2024: -2.6% - 2025E: 0.1% - 2026E: 3.8% - 2027E: 1.5% [2] - Attributable net profit (in million HKD) is forecasted as: - 2023: 6,070 - 2024: 5,712 - 2025E: 6,131 - 2026E: 6,543 - 2027E: 6,911 - Year-on-year growth rates for net profit are: - 2023: 15.7% - 2024: -5.9% - 2025E: 7.3% - 2026E: 6.7% - 2027E: 5.6% [2][6] Business Performance Insights - The company has increased gas prices in Hong Kong, leading to stable sales volume and improved profitability, with a slight increase in gas sales volume of 0.1% in 2024 [5] - The mainland business is expected to see both volume and profit growth, with total gas sales projected at 36.36 billion cubic meters in 2025, a year-on-year increase of 4.8% [5] - The company’s renewable energy business is experiencing significant profit growth, with solar power generation expected to increase by 95% to 1.83 billion kWh in 2024 [5] - The company’s net profit from extended businesses reached HKD 470 million, with contributions from both Hong Kong and mainland markets [5] Valuation Metrics - The current stock price corresponds to a price-to-earnings (PE) ratio of 20.1 for 2025, 18.8 for 2026, and 17.8 for 2027 [5] - The company maintains a stable dividend policy, with a focus on steady growth across its various business segments [5]