Zhi Tong Cai Jing·2025-09-16 09:08Group 1: Dividend Policy and Financial Performance - The company has maintained a fixed dividend policy since 2009, consistently paying HKD 0.35 per share, with a dividend payout ratio increasing from 44% in 2009 to 114% in 2024, and total dividends rising from HKD 2.3 billion to HKD 6.5 billion, reflecting a compound annual growth rate (CAGR) of 7.2% [1] - The projected net profit attributable to shareholders for 2025-2027 is estimated at HKD 5.848 billion, HKD 6.044 billion, and HKD 6.456 billion, representing year-on-year growth rates of 2.4%, 3.4%, and 6.8% respectively [1] Group 2: Hong Kong Gas Operations - The company is the sole gas supplier in Hong Kong, serving 2.04 million users by the end of 2024, achieving a penetration rate of 74% [2] - Despite a decline in gas consumption from 28,556 TJ to 27,159 TJ (a decrease of 4.9%) from 2013 to 2024, the company's EBITDA from Hong Kong operations increased from HKD 4.2 billion to HKD 5.8 billion, with a CAGR of 3.0% [2] - The company benefits from a price adjustment mechanism that allows for biannual rate increases, which helps maintain stable revenue despite consumption declines [2] Group 3: Mainland China Business Expansion - The company has expanded its mainland operations since 1994, covering 23 provincial regions, primarily in first and second-tier cities along the eastern coast and Chengdu-Chongqing area [3] - From 2019 to 2024, the gas sales volume grew at a CAGR of 7.3%, while the national apparent consumption volume grew at 7.0% [3] - The company is expected to benefit from a projected CAGR of 5.9% in national natural gas consumption from 2024 to 2030, with an anticipated increase in gas price differentials [3] Group 4: Business Diversification and Green Energy - The company is restructuring its extended business, which includes smart kitchens, insurance, and home safety, with significant market shares in Hong Kong but lower penetration in mainland China [4] - The company plans to integrate its extended business operations in mainland China and Hong Kong and is looking to attract strategic investors [4] - The company is also focusing on green energy initiatives, including green methanol, sustainable aviation fuel, and hydrogen, with production capacity expected to be released gradually from 2025 to 2028 [4] Group 5: Capital Expenditure and Cash Flow Management - Operating cash flow decreased slightly from HKD 10.5 billion to HKD 9.0 billion between 2021 and 2024, while capital expenditure reduced from HKD 10.2 billion in 2023 to HKD 6.0 billion in 2024 [5] - The company is optimizing non-core business operations and may pursue asset restructuring, which could improve free cash flow to cover annual fixed dividends of HKD 6.5 billion [5]