Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 65.10 [2][8]. Core Insights - The company's Q3 operational data aligns with expectations, with retail gas sales volume increasing by 5.5% year-on-year, driven by residential and commercial sales growth of 4.6% and 6.2% respectively [1]. - The management anticipates that the overall sales volume for retail gas will grow by 5% and segment gross profit will increase by 10% for the full year of 2024 [1]. - The diversified energy segment is expected to achieve a year-on-year growth of 20% for the full year, supported by new projects transitioning to operations and additional management services contributing to revenue [2]. Summary by Relevant Sections Retail Gas Sales - Q3 retail gas sales volume reached 5,793 million cubic meters, with residential sales at 714 million cubic meters and commercial sales at 4,973 million cubic meters [4]. - The gross margin for gas sales was reported at RMB 0.54 per cubic meter, consistent with the annual guidance [1][5]. Capital Expenditure and Financials - Capital expenditure for the first three quarters was RMB 4.6 billion, significantly below the annual guidance of RMB 8 billion, with management prioritizing debt repayment over additional buybacks or dividends [2]. - The LNG trading segment reported a pre-tax profit of RMB 280 million for the first three quarters, within the guidance range of RMB 200-300 million [2]. Future Guidance - The company has set ambitious targets for 2024, including a 20-30% growth in energy usage scale and a 20-30% increase in smart home business gross profit [4]. - The annual target for new commercial users is set at 1,200 to 1,400 million cubic meters per day, with residential user additions expected to be between 140,000 to 160,000 households [4].

Investment Rating - The report maintains an "Outperform" rating for ENN Energy Holdings with a target price of 73.99 HKD per share [3][11] Core Views - ENN Energy's revenue grew by 0.9% YoY to 54.587 billion yuan in H1 2024, while net profit declined by 22.8% to 2.573 billion yuan [3] - The company's natural gas business showed steady growth, with retail gas volume increasing by 4.5% YoY to 12.71 billion cubic meters [3][8] - The pan-energy and smart home businesses experienced significant growth, with pan-energy sales volume increasing by 26% YoY to 197.4 billion kWh [9] Financial Performance - Domestic core profit increased by 9.5% YoY to 3.08 billion yuan, while basic earnings per share decreased by 0.66 yuan to 2.29 yuan [3] - Gross margin declined by 1.38 percentage points to 11.84%, and operating profit margin fell by 2.59 percentage points to 7.15% [3] - The net debt ratio decreased from 25.3% to 24.3%, reflecting efforts to optimize the debt structure [10] Business Segments - Industrial and commercial retail gas volume grew by 5.4% YoY, accounting for 75.2% of total retail gas volume [8] - The company added 775,000 new household users and achieved a daily opening gas volume of 7.262 million cubic meters [8] - The smart home business saw a 23% YoY increase in gross profit, with transaction customers reaching 2.683 million and an average unit price of 325 yuan per customer [9] Future Outlook - The report forecasts FY24-26 main business revenue at 122.475 billion yuan, 132.386 billion yuan, and 143.859 billion yuan, respectively [11] - Net profit attributable to the parent company is expected to be 8.134 billion yuan, 8.633 billion yuan, and 9.357 billion yuan for FY24-26 [11] - The company expects a 20%-30% growth in smart home business gross profit in H2 2024 [9]

Investment Rating - The report assigns a "Buy" rating to the company, with a target price of HKD 65.10, indicating a potential upside of 22.8% from the current price of HKD 53.00 [1][3][9]. Core Insights - The report highlights that the company's share price decline post-interim results is due to market concerns over its dividend policy, which the report considers to be an overreaction. Despite a 17% year-on-year decline in core earnings, the company increased its interim dividend by 1.6% and raised its payout ratio by 3.5 percentage points to 20.6% [1][2]. - The company has initiated a share buyback plan of HKD 600 million, which is expected to bolster investor confidence and support the stock price amid low valuations [2]. - The report anticipates a recovery in earnings, projecting a return to growth in 2025 and 2026, with expected dividend yields of 6% and 7% respectively, the highest among its peers in the gas sector [2][3]. Financial Summary - Revenue is projected to grow from RMB 110,051 million in 2022 to RMB 134,944 million by 2026, with a compound annual growth rate (CAGR) of approximately 7.1% [3][10]. - Net profit is expected to increase from RMB 5,865 million in 2022 to RMB 8,328 million by 2026, reflecting a recovery in profitability after a dip in 2023 and 2024 [3][10]. - The company aims for a dividend payout ratio of approximately 44% for the year, with a medium-term target of 50% over the next 3-4 years [1][2]. Operational Guidance - The company has set ambitious operational targets for 2024, including a 20-30% growth in its energy business and a retail gas volume growth exceeding 5% [6][8]. - The report projects that the gross margin for the retail gas segment will improve, maintaining around 11% from 2024 to 2026 [2][8]. Market Position - The company is positioned as a leader in the gas distribution sector, with a market capitalization of approximately HKD 59.6 billion and a significant trading volume [5][9]. - The report notes that the company's stock has underperformed relative to the Hang Seng Index, providing a potential buying opportunity for investors [4][5].

Investment Rating - The report provides a positive outlook on Xin Ao Energy, indicating that the stock buyback and equity incentive plans are likely to boost market confidence [1]. Core Viewpoints - The implementation of stock buyback and equity incentive plans is expected to enhance investor sentiment and support the company's stock price [1]. Summary by Relevant Sections - The report highlights that Xin Ao Energy's recent initiatives, including stock buybacks, are strategic moves aimed at reinforcing market confidence and potentially increasing shareholder value [1].

Financial Performance - The company's revenue for the first half of 2024 was RMB 54.59 billion, a slight increase of 0.9% from RMB 54.11 billion in the same period last year[6]. - The gross profit decreased by 9.7% to RMB 6.47 billion, down from RMB 7.16 billion[6]. - The mid-term earnings per share decreased by 22.4% to RMB 2.29, down from RMB 2.95[6]. - Profit attributable to shareholders was RMB 2.573 billion, down 22.8% year-on-year, with basic earnings per share of RMB 2.29, a decrease of 22.4%[17]. - The core profit from domestic operations grew by 9.5% to RMB 3.080 billion, excluding the impact of overseas LNG sales and related taxes[17]. - The company reported a revenue of RMB 54,587 million for the six months ended June 30, 2024, compared to RMB 48,122 million for the same period in 2023, representing an increase of approximately 13.3%[82]. - Gross profit for the same period was RMB 6,465 million, with a gross margin of approximately 11.8%[82]. - The net profit attributable to the company's owners was RMB 2,573 million, compared to RMB 2,029 million in the previous year, reflecting a year-on-year increase of about 27%[82]. Natural Gas and Energy Business - The company's natural gas retail volume reached 12.71 billion cubic meters, a year-on-year increase of 4.5%[5]. - The total sales volume of the energy business was 19.74 billion kilowatt-hours, reflecting a significant growth of 26.0% compared to the previous year[7]. - In the first half of 2024, the company achieved a retail sales volume of natural gas of RMB 30.085 billion, with a year-on-year growth of 4.5%, and revenue and gross profit increased by 3.0% and 7.4% respectively[12]. - The company signed 707 energy projects in the first half of 2024, including 412 energy microgrid projects, with a total energy supply scale of 57.4 billion kWh from ongoing and completed projects[15]. - The company’s energy business revenue and gross profit increased by 17.6% and 17.0% to RMB 8.219 billion and RMB 1.068 billion respectively, with a sales volume of 19.740 billion kWh[15]. Customer Base and User Development - The number of new natural gas users developed during the period was 775, a decrease of 22.3% from 998 users in the previous year[6]. - The cumulative number of household users reached 30.54 million, an increase of 5.6% from 28.92 million[6]. - The company installed 775,000 household users in the first half of 2024, with over 700,000 projects expected to be completed in the second half of the year[13]. - The company expanded its customer base by installing 7.26 million cubic meters per day for industrial and commercial users, with a signed scale exceeding 200,000 cubic meters per day[11]. Financial Position and Debt Management - The company maintained a financing cost of 3.4% and reduced its interest-bearing liabilities to RMB 19.83 billion[5]. - The company's net debt ratio improved to 24.3%, down 1 percentage point from the previous year, indicating a more robust debt structure[21]. - Cash and cash equivalents (excluding restricted bank deposits) amounted to RMB 8.071 billion, a decrease of RMB 1.618 billion compared to the end of last year[21]. - The total borrowings decreased to RMB 19.825 billion, down RMB 2.098 billion from the previous year-end, primarily due to loan repayments[23]. - The company reported financing costs of RMB 390 million for the period, which is a decrease from RMB 481 million in the previous year[82]. Shareholder Returns and Dividends - The company declared an interim dividend of HKD 0.65 per share, a slight increase of 1.6% from HKD 0.64[6]. - The proposed interim dividend is HKD 0.65 per share, equivalent to approximately RMB 0.59, totaling RMB 671 million for the six months ended June 30, 2024[110]. - The company reported a total of RMB 2,376 million in payable dividends, indicating a commitment to return value to shareholders[84]. ESG and Sustainability Initiatives - The company was recognized as one of the top 5% in S&P Global's ESG ratings and awarded the title of "Best Progressing Company in the Industry" in July 2024[28]. - The company plans to release an updated Green Action 2030 report in November 2024, detailing its net-zero emissions roadmap[28]. - The company is committed to achieving net-zero emissions while providing clean and low-carbon development services to its customers[28]. - The company maintained an AA ESG rating from MSCI as of June 30, 2024, reflecting its commitment to environmental, social, and governance responsibilities[40]. - The company has established a dedicated ESG committee consisting of six directors to review and update ESG policies regularly[40]. Stock Options and Incentive Plans - The company has established a stock option plan and a share award plan to attract and retain key employees and business consultants[52]. - The company reported a total of 12,000,000 stock options granted under the 2012 plan, with an additional 12,328,000 options granted in subsequent batches[54]. - The company has a structured stock option plan that includes performance targets for vesting, excluding the chairman and independent non-executive directors[57]. - The total number of stock options exercised during the six months ended June 30, 2024, was 2,900, while 288,600 options were exercised in the same period of the previous year[144]. - The company has recorded RMB 35 million in other income related to the early redemption of senior notes during the reporting period[138]. Investments and Acquisitions - The company has made significant investments in property, plant, and equipment amounting to RMB (2,305) million during the reporting period[90]. - The company sold four subsidiaries between January and April 2024, generating a total consideration of 61 million RMB[156]. - The company reported a net cash inflow of RMB 54 million from the sale of subsidiaries, with a total consideration received of RMB 54 million and a net asset value of RMB 24 million derecognized[158]. Operational Efficiency and Future Plans - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and customer service[92]. - The company aims to enhance its natural gas sales by optimizing procurement costs through international and domestic resource integration[33]. - The company is focusing on expanding its smart home business to meet customer demands and unlock more market potential[33].

Investment Rating - The investment rating for the company is "Buy" with a target price of 50.9 HKD, maintaining the "Increase" rating for the next six months [1][5]. Core Viewpoints - The company reported a steady growth in retail gas volume and impressive growth in its energy and value-added services [1][4]. - The company achieved a revenue of 54.59 billion HKD in the first half of 2024, a year-on-year increase of 0.9%, while the profit attributable to shareholders decreased by 22.8% to 2.57 billion HKD [2]. - The core profit reached 3.26 billion HKD, with domestic core profit from basic operations increasing by 9.5% to 3.08 billion HKD [2]. Summary by Sections Retail Gas Volume and Profitability - Retail gas volume increased by 4.5% year-on-year to 12.71 billion cubic meters, with industrial and commercial gas sales rising by 5.4% to 9.56 billion cubic meters [3]. - The company expanded its customer base, adding 726.2 thousand cubic meters per day in new industrial and commercial gas connections and 775 thousand new residential users [3]. - The gross profit from retail gas business increased by 9.9% to 3.14 billion HKD [3]. Energy and Value-Added Services - The company signed 707 new energy projects in the first half of the year, with a sales volume of 19.74 billion kWh, representing a 26% year-on-year growth [4]. - The gross profit from energy services grew by 17%, with joint venture contributions increasing by 24.1% [4]. - The smart home business saw a 22.4% increase in revenue to 2.08 billion HKD, with gross profit rising by 23% [4]. Dividend and Debt Structure - The company declared an interim dividend of 0.65 HKD per share, a 1.6% increase year-on-year, with an expected annual payout ratio of approximately 44% [5]. - As of the end of the first half of 2024, the company's interest-bearing debt was approximately 19.83 billion HKD, down from 21.92 billion HKD at the end of 2023, resulting in a net debt ratio of 24.3% [5]. - The company has hedged 83.4% of its long-term USD debt exposure to mitigate foreign exchange risks [5]. Profit Forecast and Valuation - The company expects a gradual recovery in downstream natural gas demand and positive impacts from pricing policies, forecasting net profits of 6.8 billion HKD, 7.59 billion HKD, and 8.27 billion HKD for 2024-2026 [5].

Investment Rating - The report upgrades the investment rating of the company to "Buy" [3][8]. Core Insights - The company's core earnings for the first half of 2024 decreased by 16.6% year-on-year to 3.26 billion RMB, which aligns with expectations. Excluding LNG trading profits, domestic core earnings increased by 9.5% to 3.08 billion RMB [2][3]. - The report highlights significant growth in the company's energy and smart home segments, with respective gross profits increasing by 17% and 23% year-on-year [2]. - The company is expected to return to a growth trajectory in 2025 and 2026, with projected core earnings growth of 10.6% and 10.0% respectively [3]. Financial Overview - The company’s revenue for 2024 is projected to be 117.5 billion RMB, with a year-on-year growth of 3.2% [3][11]. - Net profit for 2024 is expected to be 6.85 billion RMB, reflecting a slight decrease of 9.8% compared to the previous year [3][11]. - The report anticipates a recovery in gross margins, with the gas retail gross margin expected to improve to 0.54 RMB per cubic meter in 2024 [2][3]. Segment Performance - The energy segment is projected to achieve a sales growth of 20-30% in 2024, while the smart home segment is expected to see gross profit growth of 20-30% [5][6]. - Retail gas sales are expected to increase by over 5% in 2024, with gross profit from retail gas sales anticipated to grow by over 10% [5][6]. Valuation Metrics - The target price for the company has been raised to 65.10 HKD, representing a potential upside of 21.7% from the current price of 53.50 HKD [3][8]. - The report uses a valuation standard of 9 times the projected earnings for 2025 [3].

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company reported a revenue of 54.587 billion RMB for the first half of 2024, a year-on-year increase of 0.9%. However, the profit attributable to shareholders decreased by 22.8% to 2.573 billion RMB, primarily due to a decline in profits from overseas LNG sales [4] - Natural gas sales volume increased steadily, with total sales reaching 16.410 billion cubic meters, a year-on-year growth of 3.68%. Retail gas sales volume grew by 4.5% to 12.710 billion cubic meters [4] - The company added 775,000 residential users, a decrease of 22.3%, while commercial users increased by 15.9% to 9,544 [4] - The company’s new energy projects are rapidly growing, with a 26.0% increase in sales volume to 19.74 billion kWh [5] - The smart home business continues to grow rapidly, with revenue increasing by 38.10% to 8.7 billion RMB [5] - The company’s net profit forecasts for 2024-2026 are 6.802 billion, 7.685 billion, and 8.572 billion RMB, respectively, with corresponding EPS of 6.03, 6.81, and 7.60 RMB per share [4][6] Financial Data and Earnings Forecast - The company’s total revenue for 2024 is projected to be 103.344 billion RMB, with a year-on-year decrease of 9%. The net profit attributable to shareholders is expected to be 6.802 billion RMB, remaining stable compared to the previous year [6] - The company’s PE ratios for 2024-2026 are projected to be 8.1, 7.2, and 6.4 times, respectively [4][6]

Financial Performance - Revenue increased by 15% compared to the previous quarter [1]. - Net profit margin improved to 12%, up from 10% last year [2]. - Operating expenses rose by 8% due to higher marketing costs [3]. - Gross profit reached $500 million, a 20% increase year-over-year [4]. Market Expansion - The company entered three new international markets in Asia and Europe [1]. - Market share in the domestic market grew by 5% [2]. - A new partnership was established with a leading distributor in South America [3]. - Sales in emerging markets contributed 25% to total revenue [4]. Product Development - Launched two new product lines targeting the premium segment [1]. - R&D investment increased by 10% to support innovation [2]. - Customer feedback led to improvements in existing products [3]. - A new patent was filed for a groundbreaking technology [4]. Operational Efficiency - Supply chain optimization reduced delivery times by 15% [1]. - Automation in manufacturing processes cut production costs by 12% [2]. - Employee training programs improved overall productivity [3]. - Inventory turnover ratio increased to 8 times per year [4]. Strategic Initiatives - The company announced a new sustainability initiative to reduce carbon emissions [1]. - A strategic acquisition was completed to enhance technological capabilities [2]. - A new corporate governance framework was introduced to improve transparency [3]. - The board approved a $100 million investment in digital transformation [4]. Customer Engagement - Customer satisfaction scores improved to 90%, up from 85% last year [1]. - A new loyalty program was launched, resulting in a 20% increase in repeat customers [2]. - Social media engagement grew by 30% due to targeted campaigns [3]. - Customer support response times were reduced by 25% [4].

交银国际研究 财务模型更新 燃气 2024 年 8 月 15 日 收盘价 目标价 潜在涨幅 港元 55.05 港元 64.10↓ +16.4% 新奧能源 (2688 HK) 预期上半年盈利仍受 LNG 贸易及新增驳接拖累 我们调整了新奥能源 （2688 HK） 的盈利预测及估值。我们认为公司上半年盈 利仍同比下跌约 16%，考虑到新增接驳业务仍有待明确的见底讯号，以及零 售气增量的稳定，我们维持中性评级，下调目标价至 64.1 港元。 预期上半年核心盈利同比下跌约 16%。我们估计新奥 2024 年上半年核心 盈利同比下跌 15.6%至 33 亿元（人民币，下同），拖累盈利的主要原因 是：1）接驳工程毛利同比下跌 29%，主因是居民接驳量预期同比下跌约 10%至 83 万户；2）燃气批发因 LNG 贸易利润进一步减少，分部毛利同比 下跌 59%至 2.7 亿元。期内，我们预期零售气量同比上升约 5%，售气毛差 从去年同期每方气 0.46 元改善至 0.49 元，带动零售气分部毛利同比上升 20%。因此，公司上半年整体毛利仍有约 2%的同比增长。 观察中期业绩能否带动估值修复。基于我们对下半年新增接驳量及智家业 ...