CHINA RES GAS(01193) 天风证券·2025-03-31 09:45Investment Rating - The investment rating for China Resources Gas (01193) is "Buy" with a target price not specified [6]. Core Views - The company reported a revenue of HKD 102.68 billion for 2024, a year-on-year increase of 1.4%. The core profit was HKD 4.15 billion, showing a slight increase of 0.02%, while the profit attributable to shareholders decreased by 21.7% to HKD 4.09 billion [1]. - The gas sales business demonstrated resilience with a total gas sales volume of 39.91 billion cubic meters, up 2.9% year-on-year. The average gas sales cost decreased to HKD 2.89 per cubic meter, leading to a gross margin of HKD 0.53 per cubic meter, an increase of 0.02 year-on-year [2]. - The new user connection growth slowed down due to a decline in new construction in the real estate sector, with new residential users decreasing by 15.8% to 2.791 million. The profit from the connection business fell by 27.6% to HKD 2.93 billion [3]. - The comprehensive service business achieved a revenue of HKD 4.21 billion, with a profit of HKD 1.4 billion, while the comprehensive energy business saw a revenue increase of 13.8% to HKD 1.87 billion [4]. - The company maintained a stable dividend policy, proposing a core dividend of HKD 0.95 per share, a 3.4% increase year-on-year, with a payout ratio of 53% [5]. Summary by Sections Financial Performance - Revenue for 2024 was HKD 102.68 billion, a 1.4% increase year-on-year. Core profit was HKD 4.15 billion, with a slight increase of 0.02%. Profit attributable to shareholders decreased by 21.7% to HKD 4.09 billion [1]. Gas Sales Business - Total gas sales volume reached 39.91 billion cubic meters, up 2.9% year-on-year. The average gas sales cost was HKD 2.89 per cubic meter, down by HKD 0.1, resulting in a gross margin of HKD 0.53 per cubic meter, an increase of HKD 0.02 year-on-year. The profit from gas sales was HKD 7.975 billion, reflecting an 8.6% increase [2]. User Connections - New residential user connections decreased by 15.8% to 2.791 million due to a decline in real estate construction. The profit from the connection business fell by 27.6% to HKD 2.93 billion, with a profit margin of 31.6%, down approximately 5.5 percentage points [3]. Comprehensive Services and Energy - The comprehensive service business generated HKD 4.21 billion in revenue, with a profit of HKD 1.4 billion. The comprehensive energy business saw a revenue increase of 13.8% to HKD 1.87 billion, with a gross profit of HKD 360 million, a 33.6% increase [4]. Dividend Policy - The company proposed a core dividend of HKD 0.95 per share, a 3.4% increase year-on-year, with a payout ratio of 53% [5]. Profit Forecast and Valuation - The company expects pressure on connection business in 2025, but growth in gas volume and gross margin indicates resilience. Projected net profits for 2025-2027 are HKD 4.33 billion, HKD 5.02 billion, and HKD 5.87 billion, representing year-on-year growth of 5.9%, 15.9%, and 17% respectively [5].