Zhongyu Energy (3633) H1 2026 earnings summary

Executive summary

• Turnover for H1 2026 decreased by 7.7% year-over-year to HK$6,066.7 million, mainly due to lower sales of gas and gas pipeline construction revenue.

• Profit attributable to owners fell 7.9% to HK$226.2 million, with basic EPS down to HK8.27 cents.

• Non-HKFRS profit attributable to owners rose 28.2% to HK$153.4 million, and non-HKFRS EPS increased to HK5.60 cents.

• Net asset value per share rose 10.1% to HK$2.94 as of June 30, 2026.

Financial highlights

• Gross profit margin improved to 12.8% from 12.0% year-over-year, driven by higher margins in gas sales and pipeline construction.

• Non-HKFRS EBITDA remained stable at HK$785 million.

• Net profit margin held steady at 3.7%.

• Finance costs decreased 16.7% to HK$173.8 million due to lower effective interest rates.

• Income tax expenses dropped 14.6% to HK$130.1 million.

Outlook and guidance

• The group will focus on core city gas business, expand smart energy and biomass, and accelerate digital transformation.

• Plans to leverage cost pass-through, optimize gas supply, expand into rural and night-time consumption markets, and enhance value-added services with AI-powered products.

• Smart energy business to deepen presence in biomass and ASEAN markets, with emphasis on technology and supply chain advantages.

• ESG and digital initiatives to be further integrated, with green financing supporting clean energy projects and focus on safety and talent development.