China Gas Holdings (0384) AI Stock Analysis

• Market Cap: HK$39.01B
• Dividend Yield: 7.01%
• Average Volume (3M): 6.80M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.83
• Revenue Growth: -5.40%
• EPS Growth: 8.76%
• Country: HK
• Employees: 70,000
• Sector: Utilities
• Sector Strength: 83
• Industry: Regulated Gas
• EPS (TTM): 0.58
• Shares Outstanding: 5,448,153,000
• 10 Day Avg. Volume: 5,885,230
• 30 Day Avg. Volume: 6,798,580
• PEG Ratio: -7.02
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$6.58
• Price Target Upside: -9.70% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ―

China Gas Holdings presents a stable financial situation with improvements in cash flow, which, combined with positive technical indicators, suggests a promising outlook. The stock is attractively valued with a high dividend yield, enhancing its appeal to income-focused investors. However, declining revenue and profitability margins pose potential risks that investors should monitor.

Positive Factors

Dividend Yield

China Gas offers the highest dividend yield of over 7% among major peers.

Financial Performance

Positive free cashflow with declining debt ratio, supported by capex reduction.

Government Stimulus

Government stimulus measures have led to stronger revenue growth for engineering design & construction and value-added services.

Negative Factors

Economic Activities

Slow recovery in economic activities in China will hurt gas demand, particularly from industrial users.

Natural Gas Supply

High LNG prices and tight global supply of natural gas will put pressure on dollar margin.

China Gas Holdings Business Overview & Revenue Model

Company Description

China Gas Holdings Limited operates as a gas operator and service provider in the People's Republic of China. The company invests in, constructs, operates, and maintains city and town gas pipeline infrastructure facilities, gas terminals, storage and transportation facilities, and gas logistics systems; transmits natural gas and liquefied petroleum gas (LPG) to residential, industrial, and commercial users; constructs and operates compressed natural gas/liquefied natural gas refilling stations; and develops technologies related to natural gas and LPG. It is also involved in the investment in petrochemical facilities of storage and transportation; producing and storing LPG and chemical products, as well as propane and butane; CBM business; exploration and production of coal bed methane; and gas station administration, management, and consultancy services. In addition, the company offers treasury, management, consultancy, and procurement services; and smart home products and gas insurance broker services, as well as gas heaters and kitchen appliances under the Gasbo brand. Further, it is involved in the development and investment in clean energy; wholesale and trading of natural gas and liquefied natural gas; sale of electricity; and provides gas meters, pressure regulators, corrugated pipes, gas alarms, and bottled gas. Additionally, the company engages in the wholesale and retail of household equipment, electric appliances, and kitchen appliances. As of March 31, 2022, it served 19,808 industrial and 297,664 commercial customers; and 43,095,245 residential customers, as well as operates 533 CNG/LNG refilling stations. The company was incorporated in 1995 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

China Gas Holdings generates revenue through several key streams, primarily from the distribution and sale of natural gas and LPG to residential, commercial, and industrial customers. The company also earns income by constructing and operating gas pipeline networks and providing related energy services, including gas connection projects for new users. Additional revenue is derived from the sales of gas appliances and equipment. Strategic partnerships with local governments and international energy firms enhance its market position and expansion efforts, while government policies favoring cleaner energy provide a supportive backdrop for its operations.

China Gas Holdings Financial Statement Overview

Summary

China Gas Holdings demonstrates a stable financial position with improvements in cash flow generation. Despite declining revenue and profitability margins, the company's ability to manage debt and maintain a solid equity base suggests a resilient financial strategy. Focus on operational cash flow and strategic investments positions the company for steady performance amidst industry challenges.

Income Statement

China Gas Holdings shows a declining revenue trend over the recent fiscal years, with a notable decrease from 91.99 billion to 81.41 billion. The gross profit margin has decreased slightly, indicating increased cost pressures. The net profit margin has also declined, reflecting reduced profitability. Positive aspects include stable EBIT and EBITDA margins, though they have slightly decreased as well.

Balance Sheet

The balance sheet shows a stable equity position with a debt-to-equity ratio that remains manageable despite high debt levels. The equity ratio is moderate, indicating a balanced approach between debt and equity financing. Return on equity has decreased, suggesting reduced efficiency in generating profits from equity investments.

Cash Flow

Cash flow from operations has improved, indicating enhanced cash generation capabilities. The free cash flow has seen significant improvement, supporting financial flexibility. However, the free cash flow to net income ratio is relatively low, suggesting that a significant portion of earnings is not translating into free cash flow. Investment and financing cash flows show strategic adjustments, reflecting a focus on balancing growth and shareholder returns.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
80.47B	81.41B	91.99B	88.23B	69.98B	59.54B
	Gross Profit
11.44B	11.30B	12.03B	15.74B	18.10B	17.10B
	EBIT
5.74B	5.59B	6.03B	9.79B	12.75B	12.68B
	EBITDA
8.37B	8.50B	8.85B	12.39B	14.89B	14.44B
	Net Income Common Stockholders
3.12B	3.18B	4.29B	7.66B	10.48B	9.19B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.12B	8.12B	10.72B	10.29B	9.26B	7.66B
	Total Assets
148.70B	148.70B	157.29B	163.15B	140.72B	112.10B
	Total Debt
59.24B	59.24B	61.39B	57.70B	50.70B	39.92B
	Net Debt
51.14B	51.14B	50.77B	47.51B	42.13B	32.27B
	Total Liabilities
87.95B	87.95B	92.50B	91.08B	80.86B	66.30B
	Stockholders Equity
53.93B	53.93B	57.90B	63.58B	51.94B	39.60B
Cash Flow		Free Cash Flow
1.46B	5.28B	2.30B	-673.72M	-1.12B	-2.16B
	Operating Cash Flow
7.46B	11.34B	8.26B	8.34B	7.23B	4.97B
	Investing Cash Flow
-5.92B	-7.05B	-10.08B	-15.86B	-8.89B	-9.41B
	Financing Cash Flow
-4.03B	-5.86B	2.95B	8.78B	2.57B	-883.00M

China Gas Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0384, the sentiment is Positive. The current price of 7.29 is above the 20-day moving average (MA) of 7.11, above the 50-day MA of 7.06, and above the 200-day MA of 6.65, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 54.50 is Neutral, neither overbought nor oversold. The STOCH value of 34.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0384.

China Gas Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0384	72 Outperform	HK$39.01B	12.42	5.56%	7.01%	-5.40%	8.76%
Sector *	64 Neutral	$8.56B	10.35	4.70%	4.34%	4.05%	-13.36%
CRGGF		$6.35B	12.16	9.94%	5.72%	―	―
TGASF		$1.59B	7.53	6.93%	4.50%	―	―
XNGSF		$9.21B	10.98	13.65%	4.65%	―	―
MJVC		€1.29B	71.29	1.91%	―	―	―
DT7		€1.87B	7.47	10.34%	5.12%	―	―

China Gas Holdings Corporate Events

China Gas Holdings Reports Financial Results for Zhongran Investment

China Gas Holdings Limited announced the financial results of its wholly-owned subsidiary, Zhongran Investment Limited, for the year ended December 31, 2024, and the three months ended March 31, 2025. The company reported total assets of RMB 63.8 billion and RMB 64.3 billion, respectively, with a net profit of RMB 1.2 billion for 2024 and RMB 612.9 million for the first quarter of 2025. The financial statements were prepared according to PRC accounting principles, and stakeholders are advised to exercise caution as the information pertains only to Zhongran Investment and not the entire group.

China Gas Holdings Secures New Agreements with Electronic Business

China Gas Holdings Limited has entered into two significant agreements with Electronic Business, effective from April 1, 2025, to March 31, 2028. The Value-added Products Purchase Agreement involves the supply of processed, manufactured, or distributed products by YPH Group to the Parent Group, while the Safety Inspection Service Agreement entails providing safety inspection services to the Parent Group’s customers. These agreements are classified as continuing connected transactions under the Listing Rules, requiring reporting and announcement but exempt from independent shareholders’ approval.

China Gas Holdings Appoints New Non-Executive Director

China Gas Holdings Limited has announced the appointment of Ms. Zhou Xueyan as a non-executive director and a member of the Corporate Governance and Risk Control Committee, effective from March 11, 2025. Ms. Zhou brings extensive experience from her roles at Beijing Enterprises Holdings Limited and its subsidiaries, which could enhance the company’s governance and strategic oversight. Her appointment is expected to strengthen the board’s capabilities, potentially impacting the company’s operational strategies and stakeholder relations positively.

China Gas Holdings Announces New Board and Committee Memberships

China Gas Holdings Limited has announced the composition of its board of directors and the membership of its principal committees, effective from March 11, 2025. This announcement highlights the company’s commitment to strong governance and strategic oversight, which may impact its operational efficiency and stakeholder confidence.