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China Gas Holdings (CGHLY) AI Stock Analysis
China Gas Holdings
(Other OTC:CGHLY)
CGHLY scores low primarily because of a multi-year deterioration in fundamentals: contracting revenue, sharply compressed margins, a roughly 74% decline in net income from peak, falling return on equity, and rising leverage at a time when operating and free cash flow are shrinking. Technicals reinforce the caution, with the price trading below all major moving averages, a negative MACD, and weak momentum readings. The main offset is valuation — a single-digit P/E and a 7% dividend yield provide some support and income appeal — but the payout's durability is questionable given declining cash generation and a debt-to-equity ratio above 1.1. Overall, the stock looks cheap for a reason, and stabilisation in margins and cash flow would be needed before the risk profile improves.
China Gas Holdings (CGHLY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $3.60B
- Dividend Yield
- 7.03%
- Average Volume (3M)
- 585
- Price to Earnings (P/E)
- 9.7
- Beta (1Y)
- 0.06
- Revenue Growth
- -7.28%
- EPS Growth
- -16.63%
- Country
- US
- Employees
- 70,000
- Sector
- Utilities
- Sector Strength
- 66
- Industry
- Regulated Gas
China Gas Holdings Business Overview & Revenue Model
Company Description
China Gas Holdings Limited functions as a leading gas utility and service provider primarily across the People's Republic of China. The company oversees the entire lifecycle of gas infrastructure, from investment and construction to operation and mai...
How the Company Makes Money
China Gas Holdings primarily generates revenue from downstream natural gas distribution and related services. Key revenue streams typically include: (1) Retail sales of natural gas: the company purchases gas (from upstream suppliers and/or transmissi...
China Gas Holdings Financial Statement Overview
Summary
Financials are deteriorating across the board. Revenue is contracting (-5.8% expected in FY2026E, down from a ~HK$92bn peak), gross margins have compressed from ~26% to under 15%, and net income has fallen roughly 74% from its FY2021 peak, dragging net margin to just 3.7%. The balance sheet is weakening as total debt climbs toward ~HK$67bn against shrinking equity, pushing debt-to-equity to 1.16 while return on equity collapses from over 20% to under 5%. Cash flow is positive but volatile and declining, with operating cash flow nearly halving to ~HK$5.9bn and free cash flow falling to ~HK$1.4bn, leaving a thin cushion to service rising debt.
Income Statement
30NegativeBalance Sheet
38NegativeCash Flow
35Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 73.67B | 73.92B | 79.26B | 91.99B | 88.23B | 69.98B |
| Gross Profit | 10.89B | 10.93B | 11.26B | 12.03B | 15.74B | 18.10B |
| EBITDA | 8.90B | 8.88B | 10.00B | 10.71B | 12.39B | 14.89B |
| Net Income | 2.72B | 2.73B | 3.25B | 4.29B | 7.66B | 10.48B |
Balance Sheet | ||||||
| Total Assets | 157.67B | 157.67B | 148.22B | 157.29B | 163.15B | 140.72B |
| Cash, Cash Equivalents and Short-Term Investments | 12.44B | 12.44B | 8.89B | 10.72B | 10.29B | 9.26B |
| Total Debt | 66.51B | 66.51B | 60.42B | 61.39B | 57.70B | 50.70B |
| Total Liabilities | 92.91B | 92.91B | 87.49B | 92.50B | 91.08B | 80.86B |
| Stockholders Equity | 57.15B | 57.15B | 53.86B | 57.90B | 63.58B | 51.94B |
Cash Flow | ||||||
| Free Cash Flow | 2.57B | 2.57B | 1.77B | 2.30B | -673.72M | -1.12B |
| Operating Cash Flow | 7.02B | 7.02B | 6.44B | 8.26B | 8.34B | 7.23B |
| Investing Cash Flow | -2.18B | -2.18B | -1.78B | -10.08B | -15.86B | -8.89B |
| Financing Cash Flow | -2.26B | -2.26B | -3.81B | 2.95B | 8.78B | 2.57B |
China Gas Holdings Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGHLY, the sentiment is Negative. The current price of 15.81 is below the 20-day moving average (MA) of 16.25, below the 50-day MA of 17.04, and below the 200-day MA of 20.50, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 39.98 is Neutral, neither overbought nor oversold. The STOCH value of 22.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGHLY.
China Gas Holdings Peers Comparison
Overall Rating
SWX81Outperform
ATO74Outperform
UGI69Neutral
NWN62Neutral
NI61Neutral- CGHLY42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SWX | 81Outperform | $6.74B | 12.96 | 12.89% | 2.72% | -63.47% | 166.76% |
| ATO | 74Outperform | $29.14B | 20.31 | 9.67% | 2.32% | 6.45% | 15.84% |
| UGI | 69Neutral | $8.29B | 12.39 | 13.15% | 3.88% | -0.50% | 60.66% |
| Sector * | 66Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
| NWN | 62Neutral | $2.10B | 16.29 | 8.34% | 3.96% | 4.41% | 19.03% |
| NI | 61Neutral | $21.38B | 22.62 | 9.83% | 2.69% | 9.97% | 3.46% |
| CGHLY | 42Neutral | $3.44B | 9.72 | 4.80% | 7.03% | -7.28% | -16.63% |
* Utilities Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CGHLY | China Gas Holdings Limited | 15.81 | -8.79 | -35.72% | |
| ATO | Atmos Energy | 172.41 | 3.62 | 2.15% | |
| NI | Nisource | 44.57 | 3.10 | 7.49% | |
| NWN | Northwest Natural Gas | 49.93 | 5.45 | 12.24% | |
| SWX | Southwest Gas | 93.08 | 14.42 | 18.33% | |
| UGI | UGI Corp | 38.67 | 6.53 | 20.31% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 01, 2026