新奥能源：基础业务稳固增长，债务水准显著降低

Investment Rating - The report assigns a rating of "Accumulate" to the company with a target price of HKD 58.81, representing a potential upside of 7.9% from the current price of HKD 54.5 [3][11]. Core Insights - The company has demonstrated solid growth in its core business, with a significant reduction in debt levels, indicating improved financial health [2][11]. - The company operates in 260 cities, serving a population of 140 million, and is one of the largest clean energy distributors in China [1]. - The company’s revenue for the first half of 2024 was RMB 54.59 billion, a year-on-year increase of 0.9%, while net profit attributable to shareholders decreased by 22.8% to RMB 2.57 billion [2]. Financial Performance - The gross profit for the first half of 2024 was RMB 6.47 billion, a decrease of 9.7% year-on-year, primarily due to reduced opportunities in the international market and a decline in gas wholesale business [2]. - The company reported a core profit of RMB 3.26 billion, down 16.6% year-on-year, with domestic core business showing a growth of 9.5% to RMB 3.08 billion [2]. - The company’s operating cash inflow was RMB 3.27 billion, with free cash flow reaching RMB 630 million, indicating a stable cash position [2]. Business Segments - The gross profit margin from the company's natural gas sales, energy services, and smart home businesses accounted for 87.3% of total gross profit, reflecting an improvement of 8.6 percentage points year-on-year [2]. - The company has a robust customer base and continues to expand its operational reach, indicating significant growth potential [2]. Debt and Capital Expenditure - The company has effectively optimized its debt structure, reducing interest-bearing liabilities to RMB 19.83 billion from RMB 21.92 billion in 2023, with a comprehensive financing cost of 3.4% [2]. - Capital expenditures were RMB 2.74 billion, a significant decrease of 20% year-on-year, reflecting a prudent investment strategy to maintain stable cash flow [2]. Future Outlook - The company projects a 5% growth in natural gas retail volume and a 10%+ increase in gross profit from the natural gas retail business for the year [11]. - The report anticipates that the company will benefit from the seasonal increase in natural gas demand during winter, which may offset the decline in summer sales [11].