Towngas Smart Energy Company (1083) H2 2024 earnings summary

Executive summary

• Core operating profit rose 35% year-over-year to HK$1,601 million, driven by strong renewable energy and steady gas business performance.

• Revenue increased 7.4% to HK$21,314 million, with profit attributable to shareholders up 2% to HK$1,606 million.

• Renewable energy business net profit surged 514% year-over-year to HK$479 million, with grid-connected PV capacity reaching 2.3GW.

• Dividend payout totaled 19 HK cents per share, including a one-off special dividend.

Financial highlights

• Revenue: HK$21,314 million (+7.4% year-over-year); core operating profit: HK$1,601 million (+35%).

• Net profit attributable to shareholders: HK$1,606 million (+2% year-over-year); Basic EPS: 47.1 HK cents (-1%).

• Gas sales volume: 17.2 billion m³ (+5%); Renewable energy net profit: HK$479 million (+514%).

• Non-operating gain dropped sharply to HK$5 million from HK$385 million.

• Total assets: HK$53.0 billion; net gearing ratio stable at 36%.

Outlook and guidance

• 2025 gas sales volume expected to reach 18.0 billion m³ (+4–5%); customers to grow by 0.63 million.

• PV grid-connected capacity targeted at 2.9GW (+0.6GW); power generation volume to rise 40%.

• City gas dollar margin forecasted at 0.57 RMB/m³ (+0.01 RMB/m³).

• Expansion planned in energy storage, EaaS, and hydrogen blending projects.

• Two new gas wells to commence operation in 2025, increasing storage capacity and supply resilience.