智通财经网·2025-06-30 01:28Group 1 - The core viewpoint of the report is that China Gas (00384) maintains an outperform rating due to its relatively high dividend yield, with a target price of HKD 8, corresponding to FY26/FY27 P/E ratios of 13.3x/12.6x, indicating an upside potential of 8.8% [1] - For FY25, the company reported urban gas sales of 23.52 billion cubic meters, remaining stable year-on-year, with commercial gas volume increasing by 3.7% and industrial gas volume by 1.0%. The gross margin was HKD 0.537 per cubic meter, up by HKD 0.036 per cubic meter, and the operating profit from value-added services was HKD 1.75 billion, a year-on-year increase of 10% [2] - The trend of improving gross margin is expected to continue into FY27, with FY26 projections indicating a 2% year-on-year increase in urban gas sales and a gross margin of HKD 0.55 per cubic meter, benefiting from an increase in the residential pricing ratio [3] Group 2 - As of the end of FY25, the company's net debt (excluding trade-related financing) was approximately HKD 47.8 billion, showing a slight decrease from FY24. The company is expected to continue controlling capital expenditures, indicating that the scale of interest-bearing debt has likely peaked, with potential for further reduction in financial expenses in FY26 due to relatively low RMB financing costs [4] - The company is projected to maintain a stable dividend per share over the next 2-3 years, with a payout ratio of 83.3% in 2024. Based on the growth outlook and debt situation, the expected dividend is around HKD 0.5 per share, resulting in a dividend yield of approximately 6.8% based on the closing price on June 27 [5]