Meinuo Energy: Net profit of 102 million in 2025; for every 10 shares, distribute 5 yuan and increase by 3 bonus shares (stock bonus)

By | Zhuang Xin

On March 31, Meneng Energy (001299) released its 2025 annual report, saying that for the full year the company achieved operating revenue of 726 million yuan, a year-on-year increase of 9.07%; net profit attributable to the parent company was 102 million yuan, a year-on-year increase of 17.40%; profit after deducting non-recurring items was 91 million yuan, a year-on-year increase of 19.11%. Basic earnings per share were 0.43 yuan. The growth rate of earnings significantly outperformed the growth of revenue.

Core business supported steady growth in revenue performance:

First, natural gas sales: revenue was 603 million yuan, up 7.63% year-on-year, accounting for 83.07% of total revenue. According to the annual report, during the reporting period the company sold 257 million cubic meters of gas, up 3.20% year-on-year. Leveraging the franchise-operation barriers in “two cities and one district” in Hancheng City, Shenmu City, and Fengxiang District of Baoji City in Shaanxi, the penetration rate among regional users continued to rise. With the recovery in demand for gas by industrial and commercial users and the steady growth in residents’ gas usage, together with the smooth pass-through of gas prices, the core business was supported for stable growth.

Second, the installation business: revenue from the installation of natural gas facilities and equipment was 84 million yuan, up 0.02% year-on-year, accounting for 11.53% of total revenue. Meneng Energy’s 2025 annual report shows that by the end of the reporting period, within the franchise-operation regions, the company had cumulatively provided services to more than 390k residential households and more than 5,000 industrial and commercial customers. The regional pipeline network coverage rate is high. The installation business, backed by its existing user base, continued to contribute stable returns.

In addition, emerging businesses became an important incremental driver. Value-added services such as sales of gas appliances, energy-saving retrofit services, and integrated energy services generated revenue of 39 million yuan, up 81.58% year-on-year. Their share of total revenue increased to 5.40%, becoming an important supplement to revenue growth.

In terms of cash flow, net cash flow from operating activities was 89 million yuan, down 10.64% year-on-year, but it still covers 87% of the net profit for the current period. Earnings have strong cash-flow support. The annual report states that the decline in cash flow was mainly due to increased expenditures related to natural gas procurement, rising operating costs such as staff compensation, and increased other operating expenses.

Meneng Energy also launched a 2025 profit distribution proposal: using the company’s total share capital as of the equity registration date after deducting repurchased shares as the base, it will distribute cash dividends of 5 yuan for every 10 shares to all shareholders (including tax). At the same time, it will convert 3 shares for every 10 shares from capital reserve funds. The distribution plan balances cash dividend returns with optimization of share capital liquidity.

As a private gas utility listed company based in Shaanxi, Meneng Energy has focused on regional markets for many years and built a comprehensive gas-supply assurance system. By the end of the reporting period, the company had completed more than 1,800 kilometers of city pipelines at medium pressure or above, 8 city gate stations, 4 CNG fueling stations, and 1 LNG emergency peak-shaving storage and distribution station. In addition, the company extended its industrial chain upstream by taking an equity stake in PetroChina’s Weinan pipeline transmission company, further reducing procurement costs and consolidating its regional competitive advantages.

What needs attention is that the company’s business is concentrated in a single region, with limited expansion to other locations, and that its gas supply mainly depends on PetroChina. Fluctuations in natural gas prices may affect gross profit. In addition, the slowdown in the growth rate of gas sales volume (3.20%) also needs to be continuously monitored.

As of 11:21 on March 31, Meneng Energy (001299) was trading at 13.61 yuan per share. Compared with yesterday’s closing price of 13.52 yuan, it increased by 0.09 yuan, up 0.67%. The turnover rate was 1.30%, and the total market value was 390k yuan.

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