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Hong Kong & China Gas Co
(0003)
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Rating:59Neutral
Price Target:
HK$7.50
â–²(4.02% Upside)
Action:Reiterated
Date:08/20/26
The score is primarily driven by steady financial performance and improving 2025 free cash flow, balanced against leverage near ~1x debt-to-equity and limited growth/margin volatility. Technical signals are mixed with soft momentum readings, while valuation is supported by a ~4.8% dividend yield but moderated by a ~20.8 P/E.
Positive Factors
Regulated Utility Model
Hong Kong town-gas operations and related networks provide recurring demand and infrastructure-based earnings. This regulated utility model can support business resilience and cash generation across the next several months.
Negative Factors
Declining Revenue
Persistent revenue contraction limits operating leverage and suggests that recent earnings resilience is not being supported by broad top-line expansion. Continued weakness could constrain investment capacity and reduce long-term growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated Utility Model
Hong Kong town-gas operations and related networks provide recurring demand and infrastructure-based earnings. This regulated utility model can support business resilience and cash generation across the next several months.
Read all positive factors
Hong Kong & China Gas Co (0003) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$136.78B
Dividend Yield4.79%
Average Volume (3M)37.03M
Price to Earnings (P/E)20.9
Beta (1Y)0.26
Revenue Growth1.53%
EPS Growth12.95%
CountryHK
Employees2,146
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.31
Shares Outstanding18,659,870,000
10 Day Avg. Volume28,276,014
30 Day Avg. Volume37,026,651
Financial Highlights & Ratios
PEG Ratio-7.24
Price to Book (P/B)2.20
Price to Sales (P/S)2.41
P/FCF Ratio24.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$7.45Price Target Upside3.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.31
Revenue Forecast (FY)HK$56.24B
Hong Kong & China Gas Co Business Overview & Revenue Model
Company Description
Established in 1862 and headquartered in North Point, Hong Kong, The Hong Kong and China Gas Company Limited operates as a prominent utility and energy provider. The company primarily engages in the production, distribution, and marketing of gas a...
How the Company Makes Money
Towngas primarily makes money through regulated and contract-based energy supply and related customer services.
1) Hong Kong town gas supply (utility earnings): In Hong Kong, the company sells town gas to residential, commercial, and industrial c...
Hong Kong & China Gas Co Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 54.33B | 55.47B | 56.97B | 60.95B | 53.56B |
| Gross Profit | 12.98B | 23.11B | 21.98B | 14.38B | 14.02B |
| EBITDA | 11.91B | 12.16B | 11.88B | 12.34B | 10.42B |
| Net Income | 5.69B | 5.71B | 6.18B | 5.36B | 5.13B |
Balance Sheet | |||||
| Total Assets | 163.56B | 158.27B | 161.98B | 168.47B | 168.07B |
| Cash, Cash Equivalents and Short-Term Investments | 8.01B | 7.69B | 10.41B | 13.36B | 10.63B |
| Total Debt | 61.00B | 58.81B | 56.91B | 60.44B | 55.92B |
| Total Liabilities | 92.17B | 89.94B | 90.96B | 95.71B | 88.61B |
| Stockholders Equity | 59.35B | 57.39B | 59.85B | 63.61B | 69.81B |
Cash Flow | |||||
| Free Cash Flow | 5.40B | 2.54B | 2.50B | 1.40B | 2.20B |
| Operating Cash Flow | 10.53B | 9.00B | 10.93B | 9.73B | 10.62B |
| Investing Cash Flow | -2.59B | -2.31B | -2.50B | -8.41B | -13.47B |
| Financing Cash Flow | -7.90B | -9.21B | -12.45B | 1.91B | 5.39B |
Hong Kong & China Gas Co Technical Analysis
Positive
7.21
Price Trends
6.88
Positive
6.84
Positive
6.89
Positive
Market Momentum
0.11
Negative
63.12
Neutral
82.38
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0003, the sentiment is Positive. The current price of 7.21 is above the 20-day moving average (MA) of 7.15, above the 50-day MA of 6.88, and above the 200-day MA of 6.89, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 63.12 is Neutral, neither overbought nor oversold. The STOCH value of 82.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0003.
Hong Kong & China Gas Co Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | HK$58.09B | 7.83 | 12.80% | 5.94% | 5.69% | 8.67% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
61 Neutral | HK$39.40B | 10.99 | 7.90% | 5.54% | 0.94% | 17.12% | |
60 Neutral | HK$11.48B | 7.12 | 5.79% | 6.34% | 2.60% | -11.05% | |
59 Neutral | HK$136.78B | 20.86 | 10.65% | 4.79% | 1.53% | 12.95% | |
59 Neutral | HK$30.54B | 10.86 | 4.80% | 6.31% | -7.13% | -16.53% | |
48 Neutral | HK$14.77B | 42.62 | 3.71% | 2.49% | 6.15% | -21.68% |
* Utilities Sector Average
HK:0003
Hong Kong & China Gas Co
7.30
0.52
7.69%
HK:0384
China Gas Holdings
5.54
-1.96
-26.14%
HK:1193
China Resources Gas Group
17.14
-2.54
-12.90%
HK:1083
Towngas China Co
2.99
-0.72
-19.52%
HK:2688
ENN Energy Holdings
50.50
-11.83
-18.98%
HK:1635
Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H
2.31
-0.17
-6.74%
Hong Kong & China Gas Co Corporate Events
Hong Kong and China Gas Declares Interim Dividend of HKD 0.12 Per Share
Aug 18, 2026
The Hong Kong and China Gas Company Limited, a major listed gas utility serving Hong Kong and mainland China, provides residential, commercial and industrial customers with piped gas and related services. The company is governed by a mixed board o...
Towngas Profit Climbs on New-Energy Push as Core Utilities Stay Resilient
Aug 18, 2026
Hong Kong China Gas Co reported resilient first-half 2026 performance, with operating profit after tax up 19% to HK$4.746 billion and profit attributable to shareholders rising 23% to HK$3.64 billion, driven by efficiency gains in utility operati...
Hong Kong and China Gas Board Sets August Meeting on Interim Results and Dividend
Aug 5, 2026
The Hong Kong and China Gas Company Limited has scheduled a board meeting for 18 August 2026 to review and approve its unaudited consolidated interim results for the six months ended 30 June 2026. At the same meeting, directors will consider the d...
Towngas Shareholders Back All AGM Resolutions, Renew Capital Mandates
Jun 1, 2026
Shareholders of The Hong Kong and China Gas Company Limited approved all resolutions at the 1 June 2026 annual general meeting, including the adoption of the 2025 audited financial statements and the declaration of a final dividend. They also back...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.