Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 7.63 [1][7]. Core Insights - The company focuses on extending its business and optimizing its gas supply structure, leveraging its advantages in the Hong Kong market while exploring potential in mainland China [1][2]. - The company plans to enhance its B2C operations and digitalization by introducing strategic investments, aiming to expand its customer base in mainland China [2]. - The gas supply structure is being optimized to reduce costs and increase flexibility, with a focus on increasing the proportion of unconventional and spot gas [3]. - The company holds a monopolistic position in the Hong Kong market, which significantly contributes to its profits compared to its mainland operations [4]. - Although the mainland business faces short-term challenges, the extended business is expected to be a long-term growth driver [5]. Summary by Sections Business Expansion and Strategy - The management aims to strengthen its extended business operations by collaborating with strategic investors, focusing on customer expansion before exploring cross-regional and multi-brand sales [2]. Gas Supply Optimization - The company plans to increase the share of unconventional and spot gas in its supply mix, currently dominated by the three major oil companies, to optimize costs [3]. Market Position and Profitability - The company enjoys a strong competitive advantage in the Hong Kong market, with a flexible pricing mechanism that allows for quick adjustments based on fuel costs [4]. - The profit contribution from Hong Kong's gas sales significantly exceeds that from mainland operations, highlighting the importance of the Hong Kong market to the company's overall profitability [4]. Mainland Business Outlook - The growth in the mainland commercial gas market is currently under pressure, but the extended business model has the potential to drive long-term growth as it expands its customer coverage [5]. Financial Projections - The company maintains its profit forecasts for the years 2025 to 2027, projecting a compound annual growth rate (CAGR) of 6% for net profit [6].

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company's 1H25 revenue reached 55.7 billion RMB, a year-on-year increase of 2.0%, while the net profit attributable to shareholders was 2.429 billion RMB, down 5.6% year-on-year [1] - The core profit of 3.223 billion RMB was in line with expectations, with a slight year-on-year decline of 1.2% [1] - The company’s domestic core profit from its basic business grew by 0.7% year-on-year, supported by capital expenditure expansion in the energy sector and increased penetration and average spending in smart home services [1][3] - The interim dividend per share remained stable at 0.65 HKD, with a payout ratio of 21% [1] Summary by Sections Financial Performance - The company achieved a retail gas volume of 12.953 billion cubic meters in 1H25, up 1.9% year-on-year, outperforming the national natural gas consumption growth rate of -0.9% [2] - The industrial and commercial gas volume was 9.79 billion cubic meters, up 2.4% year-on-year, driven by new industrial gas connections and existing demand [2] - The company expects a 4% year-on-year increase in retail gas gross profit for 2025 [2] Energy Sales and Smart Home Services - The company’s energy sales volume reached 19.76 billion kWh in 1H25, a slight increase of 0.1% year-on-year, with efficiency improvements offsetting energy price declines [3] - The penetration rate of smart home services reached 10.4%, with an average spending of 649 RMB per household, and a projected 5% year-on-year increase in smart home gross profit for 2025 [3] Profit Forecast and Target Price - The profit forecast for 2025-27 has been slightly adjusted downwards by 3.0%, 2.6%, and 1.5% to 7.0 billion, 7.46 billion, and 7.92 billion RMB respectively, with an expected CAGR of 4% over three years [4] - The target price has been revised down to 68.0 HKD, based on a 10x 2025E PE ratio, reflecting a premium due to the smooth progress of the privatization process [4]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company reported lower-than-expected performance for the first half of 2025, with revenue of 97.5 billion yuan (up 5.0% year-on-year) and net profit attributable to shareholders of 3.16 billion yuan (down 4.4% year-on-year) [1][4] - The company plans to distribute an interim dividend of 0.166 yuan per share, representing a payout ratio of 45.5% [1] - The long-term value reassessment of the company is viewed positively, with expectations for dual growth in earnings and dividends [1] Summary by Sections Financial Performance - In 1H25, the company's natural gas retail volume increased by 2.2% year-on-year to 16.67 billion cubic meters, with industrial volume up 8.0% but commercial and residential volumes down by 1.5% and 3.6% respectively [2] - The average selling price difference for natural gas decreased by 1 cent year-on-year to 0.44 yuan, influenced by changes in sales structure and rising contract gas prices in Q2 [2] - The tax pre-profit for the natural gas sales segment decreased by 10.6% year-on-year, primarily due to declining distribution and connection gross margins [2] LNG Segment - The company's LNG receiving station average load factor was 86.8% (up 1.4 percentage points year-on-year) in 1H25, with expectations to maintain an average load factor of 90% from 2025 to 2027 [3] - The LNG segment achieved a tax pre-profit of 140 million yuan in 1H25, with expectations for a year-on-year profit increase of 5.6% in 2025 [3] Profit Forecast Adjustments - The profit forecasts for 2025-2027 have been adjusted downwards, with net profit estimates reduced by 8.0%, 10.4%, and 13.2% to 6.15 billion, 6.49 billion, and 6.84 billion yuan respectively [4] - The target price has been lowered to 8.58 HKD from a previous 9.21 HKD, based on an 11x PE for 2025E [4]

Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 13.50 [5][9]. Core Insights - The company's performance in the first half of 2025 met expectations, with revenue of RMB 15.338 billion (up 8.6% year-on-year) and net profit attributable to the parent company of RMB 310 million (up 7.3% year-on-year) [5][6]. - The company is actively advancing its green methanol and hydrogen energy businesses, which are expected to contribute to long-term profit growth [7][9]. - The operating cash flow significantly increased by 602% year-on-year to RMB 686 million, supporting a high dividend payout ratio [8][9]. Financial Performance Summary - Revenue projections for the company are as follows: RMB 31.589 billion in 2024 (up 23.7%), RMB 35.021 billion in 2025 (up 10.86%), RMB 37.001 billion in 2026 (up 5.65%), and RMB 39.531 billion in 2027 (up 6.84%) [4]. - Net profit attributable to the parent company is forecasted to be RMB 853.12 million in 2024, RMB 977.09 million in 2025, RMB 1.037 billion in 2026, and RMB 1.086 billion in 2027 [4]. - The company maintains a stable dividend payout, with a projected dividend yield of 4.47% in 2025 [4][9]. Business Segment Analysis - The city gas business revenue decreased to RMB 6.577 billion in the first half of 2025 (down 4.9% year-on-year) due to a decline in natural gas supply [6]. - The supply chain business saw significant growth, with revenue reaching RMB 8.282 billion in the first half of 2025 (up 22.7% year-on-year) [7]. - The company has established a joint venture for green methanol production, aiming for an initial capacity of 50,000 tons, with plans to increase to 300,000 tons [7].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 36.40 [6][5]. Core Views - The company reported a revenue of RMB 10.428 billion for 1H25, a year-on-year decrease of 7.5%, and a net profit attributable to shareholders of RMB 861 million, down 22.2% year-on-year. However, the adjusted net profit increased by 2.9% year-on-year to RMB 811 million [2]. - The company plans to distribute its first interim dividend of RMB 0.4079 per share, totaling RMB 266 million, which corresponds to a payout ratio of 31.56% [2]. - The acquisition of Huakai LPG receiving station is expected to add 500,000 tons of processing capacity, reinforcing the company's leading position in the South China LPG market [2]. Summary by Sections Natural Gas - In 1H25, the company's natural gas and operation business achieved a gross profit of RMB 680 million, a year-on-year increase of 5%, with a gross margin of 14%, up 3 percentage points year-on-year. The increase in gross margin is attributed to a higher proportion of high-margin transportation fuel and industrial gas [2]. - Natural gas sales slightly decreased year-on-year, with transportation fuel sales increasing, while power plant gas usage decreased due to high international LNG spot prices [2]. LPG - The LPG business generated a gross profit of RMB 290 million in 1H25, a year-on-year decrease of 1%, maintaining a gross margin of 7% [3]. - The company is expanding its market penetration in South China, with a 106% year-on-year increase in sales of gas for chemical raw materials, achieving 340,000 tons in 1H25 [3]. Specialty Gases - The company completed the construction of a helium project in Luzhou, Sichuan, increasing helium production capacity to 1.5 million cubic meters per year. The specialty gases segment is expected to gradually release profitability, becoming an important source of earnings elasticity for the company [4]. Profit Forecast and Valuation - The company is expected to achieve net profits attributable to shareholders of RMB 1.732 billion, RMB 1.993 billion, and RMB 2.285 billion for 2025-2027, with corresponding EPS of RMB 2.60, RMB 2.99, and RMB 3.43, respectively, indicating a CAGR of 11% over the three years [5]. - The target price has been raised to RMB 36.40 based on a 14x PE for 2025, up from the previous target of RMB 32.00 [5].

Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of HKD 28.50 [7]. Core Views - The company emphasizes that despite short-term performance pressure due to a warm winter and tariff impacts leading to a slight decline in retail gas volume, it aims to enhance shareholder returns through dividends and share buybacks [1]. - The report suggests that the increase in sustainable profit contribution and improved free cash flow will lead to a revaluation of the company's value, indicating a potential buying opportunity after recent price corrections [1]. Summary by Sections Retail Gas Volume and Margin Improvement - From January to April, the company's retail gas volume experienced a slight year-on-year decline, which was less than the national average decline of 2.2%. Industrial gas volume decreased due to tariff impacts on the export industry, while residential gas volume grew, supported by an increase in connected users. However, the average household gas consumption declined due to the warm winter [2]. - The overall gross margin improved slightly year-on-year, with better recovery in residential gross margin compared to the overall margin, and stable gross margin in industrial and commercial sectors. LNG spot prices have decreased, which is expected to further lower procurement costs in 2025 [2]. Impact of Real Estate Downturn and Service Segmentation - The company reported a year-on-year decline in new residential connections from January to April, with expectations of a 20% decrease in new home connections for 2025. The proportion of old home renovations is expected to rise to 30%, which may continue to suppress profit margins [3]. - There is a divergence in performance between comprehensive energy and comprehensive services, with comprehensive energy revenue growing year-on-year, while comprehensive services remained flat due to public sentiment impacts and government oversight [3]. Shareholder Returns and Capital Expenditure Optimization - The company has officially launched a share buyback plan, intending to repurchase up to 3% of its shares, which would require approximately HKD 1.5 billion based on the closing price on June 4. The company has also committed to increasing the dividend payout ratio for 2025, with total dividend expenditure expected to be no less than HKD 2.1 billion if the DPS remains flat year-on-year [4]. - Capital expenditures are being optimized, with regular expenditures directed towards comprehensive energy, while there is limited room for reducing expenditures related to pipeline replacement and new connections [4]. Profit Forecast and Valuation - The profit forecast for the company remains unchanged, with expected net profits for 2025-2027 at HKD 4.4 billion, HKD 4.9 billion, and HKD 5.5 billion respectively, and EPS projected at HKD 1.90, HKD 2.13, and HKD 2.38, reflecting a CAGR of 10% over three years [5]. - The target price of HKD 28.50 is based on a 15x PE for 2025E, which is above the five-year historical average of 12x PE. The increasing contribution of sustainable business profits is expected to reduce performance uncertainty and lead to a revaluation of the company's value [5][11].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company demonstrates strong operational resilience, with a high dividend yield leading to a potential revaluation of its value [1] - The privatization transaction is progressing normally, with the current stock price implying a potential discount of 41% for the company's H shares [4] - The expected dividend yield for 2025 is 5.4% [1] Summary by Relevant Sections Retail Gas Volume - In Q1 2025, the company achieved retail gas volume of 7.258 billion cubic meters, a year-on-year increase of 0.3%, outperforming the national natural gas consumption growth rate of -2.2% [2] - The company expects a 6% year-on-year growth in gross profit from retail gas in 2025 [2] Comprehensive Energy Sales - The company reported a comprehensive energy sales volume of 10.039 billion kWh in Q1 2025, a year-on-year increase of 9.9% [3] - The expected gross profit growth for comprehensive energy in 2025 is projected to be 12% [3] Smart Home Services - The penetration rate for smart home services reached 3.7% in Q1 2025, a decrease of 0.3 percentage points year-on-year [3] - The expected gross profit growth for smart home services in 2025 is projected to be 10% [3] Financial Forecasts - The company slightly adjusted its profit forecasts, with core profits for 2025-2027 expected to be 7.220 billion, 7.655 billion, and 8.039 billion RMB respectively, reflecting a CAGR of 5% over three years [5] - The target price has been slightly revised down to 68.6 HKD, based on a 10x PE for 2025E [5] Key Financial Metrics - The company’s revenue for 2025 is projected at 113.873 billion RMB, with a year-on-year growth of 3.66% [6] - The expected EPS for 2025 is 6.38 RMB [6]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company demonstrates strong operational resilience, with a high dividend yield leading to a potential revaluation of its value [1] - The privatization transaction is progressing normally, with the current stock price implying a potential discount of 41% for the company's H shares [4] Summary by Sections Sales and Revenue - In Q1 2025, the company achieved a total gas sales volume of 7.258 billion cubic meters, representing a year-on-year increase of 0.3%, outperforming the national natural gas consumption growth rate of -2.2% [2] - The company expects a 6% year-on-year growth in gross profit for retail gas in 2025 [2] Energy Sales and Smart Home Services - The company reported a 9.9% year-on-year increase in comprehensive energy sales volume, reaching 100.39 billion kWh in Q1 2025 [3] - The penetration rate for smart home services decreased to 3.7%, with a year-on-year decline of 0.3 percentage points [3] - The company anticipates a gross profit growth of at least 10% for smart home services in 2025 [3] Financial Projections - The company slightly adjusted its profit forecasts, with core profits for 2025-2027 expected to be 7.220 billion, 7.655 billion, and 8.039 billion RMB, respectively [5] - The target price is set at 68.6 HKD, based on a 10x 2025E PE ratio [5] Key Financial Metrics - The company is projected to have a revenue of 113.873 billion RMB in 2025, with a year-on-year growth of 3.66% [6] - The expected EPS for 2025 is 6.38 RMB, with a projected ROE of 15.32% [6]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company reported a revenue of 109.9 billion RMB for 2024, a decrease of 3.5% year-on-year, with a net profit attributable to shareholders of 5.99 billion RMB, down 12.2% year-on-year. However, core profit exceeded expectations at 6.95 billion RMB, primarily due to better-than-expected sales and gross margins in the energy sector [1][2] - The major shareholder plans to privatize the company and achieve an "A+H" listing, indicating an acceleration in the integration of the natural gas industry chain, which is expected to unlock long-term value [1][4] - The company’s domestic core profit for 2024 increased by 10.2% to 6.71 billion RMB, driven by growth in retail gas volume and energy sales [2] Summary by Sections Financial Performance - The company’s free cash flow increased by 20% year-on-year to 3.73 billion RMB, supported by rising operating cash flow and reduced capital expenditures. The total dividend for 2024 reached 3 HKD per share, with a payout ratio of 45%, and a projected increase to 48% in 2025 [3] - The report slightly lowers the profit forecast for 2025-2026 by 2.7% and 6.7% to 7.23 billion RMB and 7.68 billion RMB respectively, with an estimated core profit of 8.08 billion RMB in 2027 [5][21] Market Position and Strategy - The privatization plan includes a cash payout of 24.5 HKD per share and the issuance of new H shares, which is expected to enhance operational efficiency and reduce costs through better integration of resources [4] - The company’s retail gas volume for 2024 is projected to grow by 4.2% to 26.2 billion cubic meters, with a stable gross margin expected to maintain a 6% increase in 2025 [2][21] Valuation Metrics - The target price for the company is set at 69.5 HKD, based on a 10x PE ratio for 2025 estimates, reflecting a slight adjustment from the previous target of 71.1 HKD [5][7] - The company’s market capitalization is approximately 74.66 billion HKD, with a current share price of 66.00 HKD as of March 27 [7]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 7.04 [7][24]. Core Insights - The company reported a core profit growth of 5% for 2024, driven by structural upgrades in green energy, despite a revenue decline of 3% to HKD 55.5 billion [1][5]. - The gas sales volume in Hong Kong remained stable, with a slight increase of 0.1% year-on-year, while the company expects to benefit from a favorable pricing mechanism [2][3]. - The renewable energy and green energy sectors show significant growth potential, with net profit from renewable energy reaching HKD 322 million, a 544% increase year-on-year [4][5]. Summary by Sections Financial Performance - For 2024, the company reported revenues of HKD 55.5 billion, a decrease of 3% year-on-year, and a core profit of HKD 5.95 billion, an increase of 5% year-on-year [1][6]. - The net profit attributable to shareholders was HKD 5.71 billion, down 6% year-on-year [1][6]. Gas Sales - The gas sales volume in Hong Kong was 27,159 TJ, with residential gas volume decreasing by 1.4% and commercial/industrial gas volume increasing by 1.4% and 5.2% respectively [2][3]. - The company anticipates stable gas sales in Hong Kong for 2025, maintaining an EBITDA margin of approximately 52% [2][3]. Renewable Energy Growth - The renewable energy segment is expected to grow rapidly, with the company shifting towards a light-asset strategy, projecting significant revenue growth from carbon services and asset management [4][5]. - The green energy business, including green methanol and sustainable aviation fuel (SAF), is strengthening its capacity to capture future demand [4][5]. Profit Forecast Adjustments - The profit forecasts for 2025 and 2026 have been adjusted downwards by 6% and 9% respectively, with expected net profits of HKD 6.24 billion and HKD 6.56 billion [5][24]. - The target price has been revised down to HKD 7.04 from HKD 7.63, reflecting a price-to-book ratio of 2.3x for 2025 [5][24].