China Gas Holdings: FY26 results missed with 30% dividend cut; operating outlook remains challenging

Research evidence excerpt

China Gas Holdings: FY26 results missed with 30% dividend cut; operating outlook remains challenging

Asia Pacific Equity Research

27 June 2026

Neutral

China Gas Holdings 0384.HK, 384 HK

Price (26 Jun 26): HK$5.65

FY26 results missed with 30% dividend cut;

▼ Price Target (Jun-27): HK$5.70

operating outlook remains challenging Prior (Dec-26): HK$7.00

China Gas’ FY26 attributable earnings dropped by 16% to HK$ 2.7bn, ~9% China

below consensus. This is a function of weak gas volume, decline in new Power Equipment and Utilities

connections and some one-offs. The weak operating trends are unlikely to

Stephen Tsui, CFA ACchange by much during this financial year in our view, as volume/margin will

(852) 2800-8592

continue to be dragged by lackluster macro momentum and elevated LNG stephen.tsui@jpmorgan.com

prices. Despite improvements in cash flows, the company cut FY26 DPS by

Vento Suen

30% to HK$0.35/share. The company’s share incentive scheme to double its (852) 2800-8546

attributable profit (ex-share-based payments and other gains & losses) within 5 vento.suen@jpmorgan.com

years (15% CAGR p.a.) sounds ambitious, in our view, given the decline in Alan Hon

earnings over the past few years. Trading at ~6% yield, we maintain a Neutral (852) 2800-8573

rating. alan.hon@jpmorgan.com

• FY26 miss driven by subsidies/tax. FY26 attributable profit of HK$2.7bn J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

was ~9% below consensus, a function of weak gas volume, decline in new Morgan Broking (Hong Kong) Limited

connections and some one-offs. Key one offs include a RMB267mn decline Key Changes (FYE Mar)

in government subsidies (including RMB139mn related to the HQ building),

a RMB150mn deferred tax impact, and other items. Prev Cur Δ

EPS (Basic) - 27E (HK$) 0.62 0.53 -14.5%