公司在手现金充沛，回购对财务压力较小。根据公司公告，公司董事会建议股份购回将由本公司内部现金资源拨付。按照9 月26 日收盘价计算，公司回购4579.7 万股股份所需支付的对价约为14.33 亿港元。截至2024 年中，公司银行存款及现金余额115.7 亿港元；整体融资成本为2.4%，保持行业最优。公司有息负债率30.3%，维持较低水平。目前公司财务情况良好，现金流较为充沛，自有资金足以覆盖回购所需支付的现金额度，且公司安排受托人信托中股份售出后回流至公司，可进一步补充公司资金规模。2023 年公司资本开支规模23.6 亿港元，同比下降47.3%，资本开支规模收缩可降低公司财务压力。公司推出回购计划彰显长期发展信心，可持续提升股东投资回报。Key points of investment:
Incident: On September 25, China Resources Gas announced the repurchase of authorized shares and the trustee of the incentive scheme to sell the remaining shares. It plans to repurchase at least 45,797,384 shares of the company's shares on the open market from time to time, accounting for about 1.98% of the company's total issued share capital, and to buy back more shares in the open market as appropriate.
The number of shares the company plans to repurchase is not less than 1.98% of the total share capital. According to the company announcement, the board of directors announced that from time to time, at least 45.797 million shares of the company's shares will be repurchased on the open market, accounting for about 1.98% of the company's total issued share capital, and more shares of the company will be purchased on the open market as appropriate. At the same time, the company plans to terminate the adoption of the restricted share award scheme. As of the end of 2023, the trustee of the scheme still holds 45.797 million shares, accounting for 1.98% of the company's issued share capital. The trustee will sell these shares in an appropriate manner. Considering that the minimum repurchase amount of the company's plan is equal to the amount sold by the trustee, and promises to buy back more of the company's shares in the open market depending on the circumstances, taking a comprehensive look at this repurchase plan, the number of repurchases by the company is not less than the amount sold by the trustee.
The company has plenty of cash, and repurchases have less financial pressure. According to the company's announcement, the board of directors of the company proposed that share repurchases be disbursed from the company's internal cash resources. Based on the closing price on September 26, the consideration to be paid by the company to repurchase 45.797 million shares is approximately HK$1.433 billion. As of mid-2024, the company's bank deposit and cash balance was HK$11.57 billion; overall financing costs were 2.4%, maintaining the best in the industry. The company's interest-bearing debt ratio is 30.3%, which remains low. Currently, the company's financial situation is good, and the cash flow is sufficient. The company's own capital is sufficient to cover the amount of cash required for the repurchase, and the company arranges that the shares in the trustee trust are sold and then returned to the company, which can further supplement the company's capital size. In 2023, the company's capital expenditure was HK$2.36 billion, down 47.3% year on year. The reduction in capital expenditure scale could reduce the company's financial pressure. The company launched a repurchase plan to demonstrate confidence in long-term development and continuously enhance shareholders' return on investment.
The company's dividends have increased steadily, highlighting the long-term investment value. The company's overall dividend amount per share has been growing steadily in recent years, from HK$0.45 per share in 2016 to HK$1.1569 per share in 2023, and the dividend ratio increased from 29.8% in 2016 to 50.3% in 2023. In mid-2024, the company paid an interim dividend of HK$0.25 per share, an increase of HK$0.1 per share over the previous year, setting a new high for the mid-term dividend. The gradual increase in dividend payments will strengthen the market's confidence in the company's performance growth prospects and effectively consolidate the company's competitiveness in the capital market.
The linkage between residential gas prices continues to be implemented and catalyzed. Starting in 2H23, upstream and downstream gas prices were launched nationwide. Recently, the first tier of gas prices in Pipeline in Hefei City has risen by 0.30 yuan/m? The city of Hefei is China Resources Gas's shareholding project. I am optimistic that the gas price mechanism for residents will continue to advance throughout the country to further improve operational stability.
Maintain a “buy” rating. We maintain the company's net profit to mother for 2024-2026 at HK$6.248, 6.812 and HK$7.809 billion, respectively. The current stock price, corresponding to 2024-2026 PE, is 11.4, 10.4, and 9.1 times, respectively, maintaining a “buy” rating.
Risk warning: the risk of high fluctuations in natural gas prices, and comprehensive energy development falling short of expectations
