CHINA GAS HOLDINGS (384) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2024 was HK$35.1 billion, down 2.6% year-over-year; gross profit rose 2.3% to HK$5.86 billion and gross margin improved to 16.7% from 15.9%.

• Profit for the period was HK$2.26 billion (up 7.4%), while profit attributable to owners fell 3.8% to HK$1.76 billion; basic EPS was HK32.7 cents, down 3.8%.

• Free cash flow was HK$2.22 billion, reflecting strong cash generation but a 55.3% year-over-year decline due to tighter CapEx and improved receivables collection.

• Value-added services revenue rose 11.6% to HK$2.01 billion, with operating profit up 15.4% year-over-year.

• The Group maintained 662 piped gas projects and expanded its user base despite a challenging housing market.

Financial highlights

• Turnover was HK$35.1 billion (down 2.6% year-over-year); gross profit HK$5.86 billion (up 2.3%).

• Profit for the period: HK$2.26 billion (up 7.4%); profit attributable to owners: HK$1.76 billion (down 3.8%).

• Free cash flow: HK$2.22 billion (down 55.3% year-over-year).

• Finance costs decreased 16.7% to HK$828.7 million.

• Interim dividend per share proposed/declared at HK15.0 cents, unchanged from the prior year.

Outlook and guidance

• Dollar margin for city & township projects expected at RMB0.53/m³, with sales volume growth projected at over 2%.

• CapEx guidance for FY2024-2025 is HK$3–3.5 billion, a significant reduction from last year.

• Management expects macroeconomic recovery and policy support to drive industry rebound and quality growth.

• Focus remains on payment collection, margin expansion, cost control, and workforce upskilling.

• Expansion in value-added services, integrated energy, and digital transformation are key growth drivers.