华润燃气：量利齐增城燃利润高增长，双综注入成长动能

Investment Rating - Buy (maintained) [4] Core Views - The company reported a 7 7% YoY increase in revenue to HKD 52 08 billion for the first half of 2024 while net profit attributable to shareholders decreased by 2 5% YoY to HKD 3 457 billion Excluding a one-time gain of HKD 694 million from the consolidation of Chongqing Gas the net profit increased by 21 2% YoY [4] - Retail natural gas sales volume reached 20 9 billion cubic meters up 5 3% YoY with residential industrial and commercial gas volumes increasing by 7 0% 3 7% and 8 1% respectively The company's gas sales gross margin improved by HKD 0 04 per cubic meter to HKD 0 54 per cubic meter [4] - The company's dual comprehensive businesses (comprehensive services and comprehensive energy) are growing rapidly with cumulative natural gas users reaching 58 836 million by 1H24 Distributed photovoltaic projects reached 208 with a total installed capacity of 273MW and distributed energy projects reached 3GW in installed capacity [4] - The company's capital expenditure decreased by 47 3% YoY to HKD 2 36 billion in 2023 leading to a significant increase in free cash flow to HKD 1 9 billion [4] Financial Performance - Revenue for 2024E is projected at HKD 107 041 billion with a YoY growth of 5 7% Net profit attributable to shareholders is expected to reach HKD 6 248 billion a 19 6% YoY increase [5] - EBITDA for 2024E is forecasted at HKD 14 592 billion up from HKD 12 7 billion in 2023 [6] - The company's PE ratio for 2024E is 9 5x with a PB ratio of 1 5x [5] Business Highlights - The company has expanded its resource channels with a 99 7% annual contract gas coverage rate and added 7 5 billion cubic meters of contracted gas volume in 2024 [4] - The company's gas source trading platform "Gas He Network" was launched in July 2024 enhancing its gas source bargaining and coordination capabilities [4] - The company's comprehensive energy business achieved a 54 6% YoY increase in energy sales volume to 1 49 billion kWh with a gross profit of HKD 160 million up 84 3% YoY [4] Market Position - The company's market capitalization stands at HKD 60 859 billion with a closing price of HKD 26 30 as of August 30 2024 [2] - The company's stock price has underperformed the HSCEI index by 21% over the past year [2]