CHINA RES GAS(HK:01193)2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for China Resources Gas (01193.HK) [5] Core Views - China Resources Gas reported a 2023 revenue of HKD 101.27 billion, a year-on-year increase of 7.35%, and a net profit attributable to shareholders of HKD 5.22 billion, up 10.36% year-on-year, aligning with expectations [5] - The company’s operating cash flow grew by 133.4% year-on-year, indicating strong financial health [5] - The retail natural gas sales volume reached 38.78 billion cubic meters, a growth of 8.1% year-on-year, with residential, industrial, and commercial gas volumes increasing by 11.1%, 7.2%, and 9.0% respectively [5] - The company is actively expanding its gas projects, having registered four new natural gas projects at the group level and signed three new projects at the member enterprise level [5] - The gas sales gross margin improved significantly, reaching HKD 0.51 per cubic meter, an increase of HKD 0.06 year-on-year, driven by a focus on core city markets and growth in high-margin industrial gas sales [5] - The company’s liquidity remains stable, with cash and bank deposits of HKD 9.98 billion, a 55% increase year-on-year, and a low interest-bearing debt ratio of 29.6% [5] - The construction of a new gas receiving station is expected to lower long-term comprehensive gas intake costs, enhancing the company’s resource acquisition capabilities [5] - The comprehensive energy business is rapidly growing, with a 58.5% year-on-year increase in energy sales volume, contributing to a significant rise in revenue and gross profit [5] Financial Data and Profit Forecast - Revenue (in million HKD): 2022: 94,338, 2023: 101,272, 2024E: 107,041, 2025E: 113,507, 2026E: 111,004 [6] - Net Profit (in million HKD): 2022: 4,733, 2023: 5,224, 2024E: 6,248, 2025E: 6,812, 2026E: 7,809 [6] - Earnings per Share (in HKD): 2022: 2.09, 2023: 2.30, 2024E: 2.75, 2025E: 3.00, 2026E: 3.44 [6] - Price-to-Earnings Ratio: 2024E: 9.1, 2025E: 8.3, 2026E: 7.2 [6]