Quick Take: China Gas FY26 - Dividend cut as macro remains challenging. Underperform

研报英文原文证据摘录

Quick Take: China Gas FY26 - Dividend cut as macro remains challenging. Underperform

ined 0.8% y-o-y to HKD3.70bn. The underperformance was driven by the high-margin safety products and

kitchen appliance businesses, which were pressured by real estate market weakness, surging copper costs (+34% y-o-y),

supplier price hikes of 8–14%, and extended settlement cycles; national home appliance revenues fell 4.3% in 2025 and by

c.16% in 2H alone.

• The water purification business has already signed c.120k households on trial, delivered HKD34MM profit in FY2026 and is

targeting 500k households with projected profit of RMB130–150MM, providing a nascent but visible new earnings driver.

• The AI-driven marketing system generated HKD250MM in converted revenue from 1.07MM business leads at a 16.1%

conversion rate — a nascent but tangible positive. Management plans to roll this system out group-wide in FY2027 to

support VAS growth and household monetisation.

• YPH Smart IPO process is expected to accelerate with listing timing expected early next year.

• For FY2027, China Gas targets segment profit growth of >10% y-o-y.

On integrated energy, electricity sales surged 31.2% y-o-y to 7.33 billion kWh, with green power certificates up

527% y-o-y.

• C&I BTM BESS: Cumulative operational capacity reached 709.4 MWh by March 2026, up sharply from 617.7 MWh at

end-September 2025 and ~89 MWh a year prior; total operational capacity including grid-side projects is now 1.15 GWh.

Project-level IRR is guided at 11–12%.

• Grid-side independent storage: two projects totalling 2.8 GWh contracted (800MW/1,600MWh in Northwest China;

300MW/1,200MWh in North China); a further 3.8 GWh added to the order backlog in FY2026 — the most significant new

business development of the year