China Gas Reports Annual Revenue of HK$73.6 Billion and Free Cash Flow of HK$4.8 Billion for FY2026

Stock News06-26

CHINA GAS HOLD (SEHK: 00384) has announced its annual results for the period ending March 31, 2026, achieving revenue of approximately HK$73.604 billion.

Profit attributable to the company's owners was around HK$2.719 billion, with earnings per share of HK$0.50.

The board has proposed a final dividend of HK$0.20 per share, resulting in an annual dividend payout ratio of 70.0%.

The company's free cash flow reached HK$4.838 billion, representing a year-on-year increase of 3.8%.

Operational Footprint

As of March 31, 2026, the group held exclusive rights to 662 piped gas projects across 30 provinces, municipalities, and autonomous regions.

Its infrastructure portfolio includes 32 long-distance natural gas pipelines, 484 compressed/liquefied natural gas refueling stations for vehicles and vessels, one coalbed methane development project, and 128 liquefied petroleum gas distribution projects.

Market Challenges and User Growth

The persistent downturn in the national real estate market, with weak new housing construction starts, has led to a continued decline in new gas connection volumes for the industry.

During the period, the group connected approximately 1.1396 million new residential customers.

Cumulative residential connections reached about 49.5913 million as of March 31, 2026, marking a 2.4% increase from the previous year.

The group also added 2,184 new industrial users and 36,500 new commercial users during the period.

Cumulative connections reached approximately 29,200 industrial users and 440,300 commercial users, representing year-on-year growth of about 8.1% and 9.0%, respectively.

Gas Sales and Operations

As of March 31, 2026, the group had successfully passed through cost increases for approximately 76.3% of residential gas volume sold across its projects.

Total natural gas sales for the period amounted to 41.43 billion cubic meters, a 3.7% increase year-on-year.

Sales from city and township gas projects totaled 23.47 billion cubic meters, showing a slight decrease of 0.2% compared to the prior year.

Sales from the trading and direct supply pipeline business reached 17.96 billion cubic meters, a significant 9.2% increase year-on-year.

LPG Business Performance

During the period, the group sold 3.421 million metric tons of liquefied petroleum gas, generating total LPG sales revenue of HK$14.972 billion.

The operating profit from the LPG business was HK$82.218 million, reflecting a substantial 58.1% growth compared to the same period last year.

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