Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance relative to the market [5]. Core Views - The company reported a 6.3% year-on-year increase in revenue for the first half of 2024, reaching HKD 10.501 billion, while operating profit grew by 26.0% to HKD 935 million. However, net profit attributable to shareholders decreased by 33.4% to HKD 743 million due to a non-operating gain of HKD 600 million from exiting a project in Shanghai last year. Excluding this factor, core profit increased by 57.5% [5]. - The company is seeing steady improvement in gas sales margins, with a total gas sales margin of HKD 0.52/m³, benefiting from timely pricing adjustments for industrial and residential gas [5][6]. - The photovoltaic (PV) business is showing significant growth potential, with a 143% increase in PV generation to 680 million kWh in the first half of 2024, contributing to a net profit increase of HKD 148 million in the renewable energy segment [5][6]. Summary by Sections Financial Performance - Revenue (million HKD): 20,073 in 2022, 19,842 in 2023, projected 21,517 in 2024, 23,731 in 2025, and 25,715 in 2026 [4][7]. - Net Profit (million HKD): 965 in 2022, 1,575 in 2023, projected 1,728 in 2024, 1,873 in 2025, and 1,982 in 2026 [4][7]. - Earnings per Share (HKD/share): projected 0.30 in 2024, 0.47 in 2025, 0.51 in 2026 [4]. Business Segments - Gas sales volume increased by 6.2% to 8.74 billion m³ in the first half of 2024, with industrial gas volume growing by 4.6% and commercial gas volume by 9.4% [6]. - The company added three new city gas projects, bringing the total to 190, and increased its user base by 450,000 to 17.22 million [6]. Valuation - The current stock price corresponds to a PE ratio of 5.8 for 2024, 5.3 for 2025, and 5.0 for 2026, with a PB ratio of 0.5, indicating significant valuation upside potential [5].
港华智慧能源：城燃稳步回暖，光伏厚积薄发