Tianfeng Securities·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for China Resources Gas (01193) with a target price increase of 7.35% [1] Core Views - The company is expected to benefit from a recovery in performance driven by both volume and price increases in its core urban gas business [1] - The company reported a net profit attributable to shareholders of HKD 5.224 billion, representing a year-on-year growth of 10.36% [1] - The retail gas volume increased by 8.1% to 38.78 billion cubic meters, outperforming the national growth rate of 7.6% [1] Summary by Sections Financial Performance - In 2023, the company achieved operating revenue of HKD 101.272 billion, with a proposed final dividend of HKD 1.1569 per share, up 10.18% year-on-year [1] - The total market capitalization is HKD 57.73462 billion, with a total share capital of 2,314.01 million shares [1] Retail Gas Business - The retail gas volume showed robust growth, with residential gas volume increasing by 11.1% to 9.44 billion cubic meters, and industrial gas volume rising by 7.2% to 20.11 billion cubic meters [1] - The gross margin for gas sales improved to HKD 0.51 per cubic meter, an increase of HKD 0.06 per cubic meter year-on-year [1] Market Expansion - The company registered 4 new projects at the group level and signed 3 new projects at the member enterprise level in 2023, enhancing its market presence [1] - The comprehensive service business generated revenue of HKD 4.04 billion, a year-on-year increase of 27% [1] Earnings Forecast and Valuation - The forecasted net profit attributable to shareholders for 2024-2026 is HKD 5.73 billion, HKD 6.37 billion, and HKD 7.15 billion, reflecting year-on-year growth rates of 9.7%, 11.2%, and 12.2% respectively [1] - The corresponding price-to-earnings ratios are projected to be 10.1, 9.1, and 8.1 times [1]