Shenzhen Gas (601139) 2019 Interim Report Review: Off-site gas business grows rapidly LNG receiving station puts into trial production

Investment Highlights: Event: Shenzhen Gas (601139) released its 2019 semi-annual report and achieved operating income of 65.

8.3 billion, an annual increase of 6.

69%; net profit attributable to mother 5.

9.5 billion, down 6 every year.

85%; net profit after deduction 5

7.5 billion, a decline of 9 per year.


  Opinion: The growth of natural gas business outside Shenzhen is a source of revenue growth.

At present, the company owns 40 cities (districts) pipeline gas franchise rights in 8 provinces (regions) including Guangdong, Guangxi, Jiangxi, Anhui, Hunan, Jiangsu, Zhejiang, and Yunnan.

2019H1 natural gas sales revenue42.

6.7 billion, accounting for 65%, an increase of 5 in ten years.

82%; sales of natural gas 14.

7.0 billion cubic meters, an annual increase of 2.

25%, of which 13 are natural gas pipelines.

300 million cubic meters, an annual increase of 2.

7%, sales of pipeline natural gas in Shenzhen area 8.

7.7 billion cubic meters, accounting for 66%, a decline of 5 per year.

09%, mainly due to the decline in sales of natural gas in power plants, which in the first half of the year3.

200 million cubic meters, a decrease of 18 per year.


LPG sales revenue12.

9.5 billion, a decline of 7 per year.

17%, of which 28 are LPG wholesale sales.

66 First, it falls by 5 per year.

32%; Bottled LPG sales 3.

77 per year, 18 per year.


Sales outside Shenzhen achieved 19.

48ppm, an increase of 24 per year.

39%; sales of pipeline natural gas5.

300 million cubic meters, an increase of 17 in ten years.


Gross profit margin in the first half of 20.

39%, down by 1 every year.

34 averages with a period expense ratio of 10.

97%, rising by 1 every year.

16 averages.

Net operating cash flow 6.8.7 billion, down 24 every year.


  Accelerate the renovation of pipeline gas in old houses and urban villages.

The company accelerated the natural gas renovation of old houses and urban village pipelines in Shenzhen, and completed the renovation in 2019H1.

170,000 households.

At present, the penetration rate of pipeline gas for residents in Shenzhen is about 30%. Compared with the penetration rate of 80% in developed cities such as Beijing and Shanghai, the penetration rate of residents’ gas in Shenzhen is still increasing.

According to the requirements of the Shenzhen Municipal Government, the gas penetration rate of residents is expected to rise to 80% in the next three years.

It is estimated that by 2020, 1 million households will be retrofitted with pipeline gas in urban villages and old residential areas.

The gas used in the reconstruction of urban villages will contribute to an increase in net profit of about 200 million yuan.

  The LNG receiving station has entered the trial production stage.

The LNG receiving station with an annual turnover of 1 billion cubic meters invested by the company was put into trial operation on August 18.

The company will have independent LNG import channels, and the industrial chain layout will be further improved, which can enrich the gas source structure, and it is expected to obtain gas sources with cost advantages in the future.

  Investment advice: 杭州桑拿网 Maintain a cautious recommendation level.

It is expected that the EPS for 2019-2020 will be 0.

39 yuan, 0.

46 yuan, corresponding to 16 times and 14 times the corresponding PE, maintaining a cautious recommendation level.

  risk warning.

The progress of urban village gas reform gradually exceeded expectations; natural gas sales in power plants exceeded expectations; uncertainty in gas price changes; LNG distribution business was lower than expected; liquefied petroleum gas business replacement.