Ge Long Hui·2025-08-16 19:43Core Viewpoint - The company reported a revenue of HKD 22.09 billion for 1H25, a year-on-year decrease of 10.9%, while the net profit attributable to shareholders was HKD 43.48 billion, reflecting a slight increase of 0.9% year-on-year. The company maintains a strong risk resilience in its business model and anticipates potential increases in returns from various assets in 2025/26, leading to a stable or increasing profit outlook, thus maintaining a "buy" rating [1]. Group 1 - The UK business contributed a profit of HKD 22.23 billion in 1H25, showing a year-on-year increase of 19.2%, benefiting from the strong performance of regulated assets and the appreciation of the GBP [2]. - The Australian business reported a profit contribution of HKD 7.93 billion in 1H25, a decrease of 8.2% year-on-year, primarily due to the expiration of several contracts and a decline in market electricity prices [2]. - The Canadian business's profit contribution was HKD 2.75 billion in 1H25, down 8.6% year-on-year, mainly due to a decrease in generation and electricity prices at Canadian Power gas plants [2]. Group 2 - The company expects an increase in allowed returns for regulated assets entering new regulatory periods in 2025/26, which will support future earnings growth [3]. - The Northumbrian Water (NW) is set to enter a new regulatory period on April 1, 2025, and is currently seeking a re-determination from regulators to secure better terms, with an expected increase in allowed returns [3]. - The company adjusted its profit forecasts for 2025-2027, estimating net profits of HKD 81.2 billion, HKD 87.9 billion, and HKD 92.9 billion respectively, reflecting slight adjustments from previous estimates [3].