Towngas Smart Energy core profit slips as tariff pressure eases
SingTao · 2 SOURCESabout 2 hours ago2 MIN
Summary
Towngas Smart Energy said its first-half earnings were weighed down by lower electricity prices, which slowed growth in its renewable energy business, even as revenue increased and its gas segment delivered steady profit growth through improved margins . The company reported interim net profit of HK$690 million, down 9% year on year, while core profit excluding non-operating gains fell 4% . It maintained an interim dividend of HK$0.05 per share and said it would step up solar project execution in the second half, targeting 0.8 gigawatts of new grid-connected photovoltaic capacity . Management also said photovoltaic asset management and market-based power sales would be key future growth drivers, with expectations that downward pressure on electricity tariffs will ease in the second half .
Key Points
- First-half revenue rose to HK$11.328 billion, up 8.5% according to Sing Tao and 9% according to am730, while interim net profit fell to HK$690 million .
- Core profit, excluding non-operating gains, declined 4%, with chief executive Wong Wai-yee saying lower electricity prices slowed renewable energy growth .
- Mainland gas sales fell 2% to 2.4% year on year to about 8.54 billion cubic metres, amid a weak property market and a warm winter .
- City-gas integrated margin improved by RMB0.02 to RMB0.59 per cubic metre, helping the overall gas business maintain steady profit growth and add 270,000 users .
- Distributed solar added 0.2 gigawatts in the first half for total installed capacity of 3 gigawatts, while power trading volume doubled to 7.23 billion kilowatt-hours .
Why It Matters
For Hong Kong investors, the results show a business in transition: traditional gas operations are still supporting earnings while renewable returns remain exposed to mainland power-pricing changes . The company’s push into solar asset management, electricity trading and storage-linked projects suggests future growth will depend less on simple power generation and more on scale, pricing mechanisms and energy services execution .