HK Stock Market Move | CHINA GAS HOLD(00384) rose nearly 4%, annual net profit attributable to shareholders increased year-on-year. Institutions pointed out that the company's gross margin repair trend may continue.

China Gas Hold (00384) rose nearly 4%, as of the time of writing, it rose 3.82% to HK$7.61, with a trading volume of HK$49.8655 million. On the news front, China Gas Hold recently released its annual results ending March 31, 2025, with revenue of HK$79.258 billion; gross profit of HK$11.263 billion; attributable profit to shareholders of HK$3.252 billion, a year-on-year increase of 2.09%; basic earnings per share of HK$0.6; and a proposed final dividend of HK$0.35 per share. According to the announcement, as of March 31, 2025, the group has obtained 662 exclusive natural gas pipeline projects in 30 provinces, municipalities, and autonomous regions, as well as 32 natural gas transmission pipelines, 488 compressed/liquefied natural gas vehicle and ship refueling stations, one coalbed methane development project, and 120 liquefied petroleum gas distribution projects. As of March 31, 2025, the group has completed a total of 562,729 kilometers of gas pipelines. China International Capital Corporation (CICC) believes that looking forward to FY26, the company expects urban gas sales volume to increase by +2% year-on-year and gas sales gross margin to be 0.55 yuan/cubic meter (YoY +0.014 yuan/cubic meter). The bank believes that the current demand for industrial and commercial gas is still suppressed by high gas prices, and demand recovery still depends on the macroeconomic recovery situation. In addition, benefiting from the increase in the proportion of residential gas prices, the bank believes that the trend of gross margin recovery may continue until FY27.