Ge Long Hui·2025-08-30 03:15Core Viewpoint - New Hope Energy reported a mixed performance for the first half of 2025, with revenue growth but a decline in net profit, indicating stable operations amidst market challenges [1] Financial Performance - 1H25 revenue reached 55.7 billion RMB, a year-on-year increase of 2.0% - Net profit attributable to shareholders was 2.429 billion RMB, down 5.6% year-on-year - Core profit stood at 3.223 billion RMB, a slight decline of 1.2% year-on-year, aligning closely with forecasts [1] Business Segments - Retail gas volume showed stable operations, with 1H25 retail gas volume at 12.953 billion cubic meters, up 1.9% year-on-year, outperforming national natural gas consumption growth of -0.9% [1] - The company added 692,000 residential connections, a decrease of 10.7% year-on-year, and commercial gas volume increased by 2.4% year-on-year [1] Energy Efficiency and Smart Home Services - The company achieved a sales volume of 19.76 billion kWh in 1H25, a marginal increase of 0.1% year-on-year, with 374 operational projects, an increase of 18 from the end of 2024 [1] - Smart home service penetration reached 10.4%, with an average customer spending of 649 RMB per household, indicating growth in high-consumption areas [1] Profitability Forecasts - Core profit forecasts for 2025-2027 have been slightly adjusted downwards by 3.0%, 2.6%, and 1.5% to 7.0 billion, 7.46 billion, and 7.92 billion RMB respectively, with a projected CAGR of 4% over three years [2] - The target price has been revised to 68.0 HKD, based on a 10x 2025E PE ratio, reflecting a premium due to the smooth progress of the privatization process [2]