SWS Research issued a research report on Beijing Gas Blue Sky

September 28, 2018 - 10:50
SWS Research issued a research report on Beijing Gas Blue Sky

HONG KONG, CHINA - Media OutReach - 28 September 2018 - SWS Research issued a research report on Beijing Gas Blue Sky Holdings Limited ("the Company"or "Beijing Gas Blue Sky",together with its subsidiaries, the "Group", HKSE stock code: 6828)today.


Thereport states that the Group is a nationwide integrated natural gas providerand operator. The Group's operations cover a large portion of the natural gasindustry value chain, from upstream LNG imports, receiving terminals to tradingand distribution to downstream fueling stations, as well as city gas and directsupply, etc. In 2017, the Group achieved natural gas sales volume of 513million cubic meters and revenue of HK$1.45 billion, increased by 128.97% YoY,with trading and distribution and city gas business contributed HK$877 millionand HK$500 million, accounting for 60.4% and 34.42% of total revenuerespectively.


Thenewly-acquired projects of the Group brought stable performance. The Group acquired three city gas projects in Songyuan (JilinProvince), Yuncheng, and Yongji (both in Shanxi Province) in 2017. The threeprojects jointly contributed gas sales volume of 42.7 million m³ and profit ofHK$47.1 million in 2017. As the Group's the largest shareholder, Beijing GasGroup planned to construct an emergency storage project in Tianjin South Port'sLNG receiving terminal and purchased a 20% stake in Rosneft Oil's VCNG project,fully organized upstream natural gas resources. The Group is positioned as theBeijing Gas Group's overseas investment and financing platform. As theCaofeidian LNG receiving terminal has been completed and the city gas projectin Teng County has been progressed gradually with the flourishing ceramics andtitanium industries, the surge in gas consumption for industrial use isanticipated. The Group is expected to accelerate the expansion of the gasbusiness segment based on the parent support.


Also, the Group acquired 29% stake in Caofeidian's LNG receivingterminal with currently an annual capacity of 6.5 million tons/year in 2018.Caofeidian's LNG receiving terminal recorded net profit of RMB825 million in2017, increased by approximately 400% YoY. Due to favorable policies and theexpansion of the tank, the turnover rate and scale of the Caofeidian LNGreceiving terminal are expected to increase, which is expected to increase thegroup's profit. In addition, the Group actively implemented the "One Belt, OneRoad" strategy, actively participating in the receiving terminal resources inthe "One Belt" along the eastern coast and expanding the downstream terminalmarket in the western inland and launching upstream gas source cooperation toimprove the LNG industrial chain layout.


About Beijing Gas BlueSky Holdings Limited

Beijing Gas Blue SkyHoldings Limited ("Beijing Gas Blue Sky", HKSEstock code: 6828) is an integrated natural gas provider, distributor andoperator, with an emphasis on the midstream and downstream natural gasdevelopment. Our natural gas business includes: (i) construction and operationof compressed natural gas ("CNG") and liquefied natural gas ("LNG") refuelingstations for vehicles; (ii) construction of natural gas pipelines and operationof city gas projects by providing piped gas; (iii) direct supply of LNG toend-users; and (iv) trading and distribution of CNG and LNG.


The Group has adaptedto the "One Belt One Road" policy, and focus on operating and investing naturalgas business. The Group is actively expanding its business development anddistribution, as well as continues to gradually expanding the scale ofoperations. Currently, the Group has business presence in several provinces inNortheast China, East China, Central South China and Southwest China, includingLiaoning Province, Shandong Province, Anhui Province, Zhejiang Province, HubeiProvince, Guizhou Province, Sichuan Province and Hainan Province, etc. TheGroup is committed to its vision: "develop clean energy, enhance customervalue, create a beautiful blue sky". In the future, it will continue toactively investing and developing natural gas business, as well asparticipating in the development of natural gas industry value chain.