Tian Lun Gas Holdings Full Year 2023 Earnings: Misses Expectations

Tian Lun Gas Holdings (HKG:1600) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥7.73b (up 2.4% from FY 2022).
• Net income: CN¥479.6m (up 7.9% from FY 2022).
• Profit margin: 6.2% (up from 5.9% in FY 2022). The increase in margin was driven by higher revenue.
• EPS: CN¥0.49 (up from CN¥0.45 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Tian Lun Gas Holdings Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) also missed analyst estimates by 21%.

The primary driver behind last 12 months revenue was the Sale of Natural Gas in Cylinders segment contributing a total revenue of CN¥5.12b (66% of total revenue). Notably, cost of sales worth CN¥6.27b amounted to 81% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling CN¥579.4m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how 1600's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Gas Utilities industry in Hong Kong.

Performance of the Hong Kong Gas Utilities industry.

The company's shares are up 3.2% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 2 warning signs for Tian Lun Gas Holdings (1 makes us a bit uncomfortable!) that you need to be mindful of.

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