POWER ASSETS(00006) Earnings Summary
Bullish Points:
1. The company's unaudited profit for the 6 months ended June 30, 2023, was HKD 29.59 billion, showing strong core business performance despite rising global market interest rates and weak foreign currency exchange rates.
2. Hong Kong business contributed HKD 3.28 billion in profit, with a 3% increase in electricity sales compared to the same period in 2022 due to warmer weather and gradual normalization of economic and business activities.
3. In mainland China, Jinwan Power Plant saw increased electricity sales due to strong industrial demand, and the Dali and Leting wind farms produced renewable energy that reduced carbon emissions by 99,000 tons in the past 6 months.
4. Wellington Electricity Lines Limited achieved safety, reliability, and customer service indicators while maintaining excellent network asset performance.
5. Ratchaburi Power Plant's long-term purchase contract with its single customer, Thailand Electricity Authority, continues to provide stable revenue.
6. The company is focusing on incorporating hydrogen into heating fuel to move towards zero-carbon gas pipeline networks.
Bearish Points:
1. UK business contributed HKD 13.98 billion in profit, affected by UKPN regulatory reset, increased financing costs, and unfavorable exchange rates.
2. Australian business contributed HKD 5.58 billion in profit, with reduced profit due to gas network regulatory reset and unfavorable exchange rates.
In summary, POWER ASSETS (00006) has shown strong core business performance and growth in certain areas, such as Hong Kong and mainland China. However, the company faces challenges in the UK and Australian markets due to regulatory resets and unfavorable exchange rates. The company is also focusing on incorporating hydrogen into heating fuel to move towards zero-carbon gas pipeline networks. For more information, you can read the original text of POWER ASSETS' financial report: https://static.tigerbbs.com/081bb17316984c62b3d4699977e10434
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