Investment Rating - The report maintains a "Buy" rating for China Resources Gas (01193) [2][7] Core Views - The company reported a revenue of HKD 97.73 billion for 2025, a decrease of 4.81% year-on-year, with a net profit attributable to shareholders of HKD 3.547 billion, down 13.23% [7] - The company plans to distribute a final dividend of HKD 0.65 per share, maintaining an annual dividend of HKD 0.95, resulting in a dividend yield of 4.97% based on the closing price on March 30 [7] - Natural gas sales volume for 2025 is projected to be 401.8 billion cubic meters, with a slight increase of 0.7% year-on-year, and a gross margin of HKD 0.54 per cubic meter [7] - The company is actively enhancing its gas sourcing capabilities, with a significant increase in total gas volume to 6.1 billion cubic meters, up 52.2% year-on-year [7] - The company’s capital expenditure is expected to decrease by 16.9%, while free cash flow is projected to increase by 12.3% [7] Financial Data and Profit Forecast - Revenue projections for the years 2024 to 2028 are as follows: HKD 102.676 billion (2024), HKD 97.733 billion (2025), HKD 100.012 billion (2026E), HKD 102.589 billion (2027E), and HKD 105.066 billion (2028E) [6][8] - Net profit attributable to shareholders is forecasted to be HKD 4.088 billion (2024), HKD 3.547 billion (2025), HKD 4.315 billion (2026E), HKD 4.757 billion (2027E), and HKD 5.350 billion (2028E) [6][8] - The company’s earnings per share (EPS) is projected to be HKD 1.80 (2024), HKD 1.55 (2025), HKD 1.88 (2026E), HKD 2.08 (2027E), and HKD 2.34 (2028E) [6][8] - The price-to-earnings (P/E) ratios for 2026 to 2028 are estimated at 10.1, 9.2, and 8.2 respectively [7]

Core Viewpoint - China Gas reported a decline in revenue and net profit for 1H FY2025/26, primarily due to reduced new user connections and slower industrial gas demand, although free cash flow increased significantly [1][5]. Group 1: Financial Performance - The company achieved a revenue of HKD 34.481 billion, a year-on-year decrease of 1.8% [1]. - Net profit attributable to shareholders was HKD 1.334 billion, down 24.2% year-on-year, falling short of expectations [1]. - Free cash flow reached HKD 2.6 billion, representing a year-on-year increase of 17.2% [1][4]. - The company proposed an interim dividend of HKD 0.15 per share, unchanged from the previous year [1]. Group 2: Gas Sales and Margins - Natural gas sales volume was 17.41 billion m³, a year-on-year increase of 1.7%, with town gas sales volume at 9.19 billion m³, down 1.5% [2]. - The retail gas gross margin was HKD 0.58 per m³, a slight decrease of HKD 0.01 per m³, mainly due to a decline in high-margin industrial gas [2]. - The company maintains a gross margin target of HKD 0.55 per m³ for the full fiscal year, indicating potential for a HKD 0.01 per m³ increase compared to FY2024/25 [2]. Group 3: User Connections and Impact - The company added 676,300 new residential users, a decline of 25.2% year-on-year, with new building connections accounting for 67.9% of the total [3]. - The pre-tax profit from connection and engineering services constituted only 16.0% of total business segment profits, indicating a decreasing contribution to overall profitability [3]. - The forecast for new user connections in FY2025/26 is expected to be between 1 million and 1.2 million, suggesting a continued decline in the impact of connection services on overall performance [3]. Group 4: Value-Added and Comprehensive Energy Business - Revenue from value-added services reached HKD 2.02 billion, a year-on-year increase of 0.3%, with operating profit at HKD 1.02 billion, up 1.3% [4]. - The company saw significant growth in commercial user energy storage, reaching 617.7 MWh, a year-on-year increase of 693.5% [4]. - Electricity sales volume increased by 25.5% year-on-year, with green certificate trading volume rising by 709% [4]. Group 5: Financing and Cost Management - The company achieved a record high free cash flow of HKD 2.6 billion due to reduced capital expenditures [4]. - Financing costs decreased to 3.39%, down 0.45 percentage points from FY2024/25, reflecting improved debt structure management [4]. Group 6: Investment Rating - The company maintains a "Buy" rating despite a slowdown in gas sales growth and ongoing pressure on connection services, with revised net profit forecasts for FY2025/26 to FY2027/28 [5]. - The current stock price corresponds to a PE ratio of 14, 12, and 11 for FY2025/26 to FY2027/28, respectively, with a stable dividend policy and a competitive dividend yield in the industry [5].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不對因本公告全部或任何部分內容所產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 （於 百 慕 達 註 冊 成 立 之 有 限 公 司） （股份代號：2886） 自願性公告 與浙江泰能簽署戰略合作協議 本 公 告 乃 濱 海 投 資 有 限 公 司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」） 自 願 作 出。 本 公 司 董 事 會（「董事會」）欣 然 宣 佈，本 公 司 全 資 附 屬 公 司 濱 海 投 資（天 津） 有 限 公 司 與 浙 江 正 泰 電 器 股 份 有 限 公 司（上 海 證 券 交 易 所 上 市 公 司，股 票代號：601877.SH）之控股子公司浙江泰能智慧電力有限公司（「浙江泰能」） 訂 立《戰 略 合 作 協 議》，雙 方 同 意 在 全 國 範 圍 內 開 展 綜 合 能 源 業 務 合 作， 共 同 推 進 零 碳 園 區、智 能 微 電 網、儲 能、充 換 電 ...