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Towngas China Co
(1083)
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Rating:60Neutral
Price Target:
HK$3.50
â–²(12.18% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by mixed financial performance: improving leverage is a positive, but it is outweighed by sharp 2025 margin compression and persistent negative free cash flow that reduces flexibility. Valuation is a key support (low P/E and ~4% yield), while technicals are mildly constructive but not strong enough to offset the cash-flow and margin risks.
Positive Factors
Regulated city-gas franchise model
Towngas China’s core franchise of developing and operating city-gas networks creates durable, regionally entrenched cash flows. Regulated tariffs and long-term contracts with municipalities support predictable volumes and stable service demand, sustaining business visibility over multiple years.
Negative Factors
Persistent negative free cash flow
Sustained negative free cash flow signals capital intensity and working-capital strain, forcing continual external financing. Over months to a few years this reduces strategic flexibility, constrains reinvestment choices, heightens refinancing exposure, and can pressure dividend sustainability if trends persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated city-gas franchise model
Towngas China’s core franchise of developing and operating city-gas networks creates durable, regionally entrenched cash flows. Regulated tariffs and long-term contracts with municipalities support predictable volumes and stable service demand, sustaining business visibility over multiple years.
Read all positive factors
Towngas China Co (1083) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$11.46B
Dividend Yield6.14%
Average Volume (3M)3.33M
Price to Earnings (P/E)7.4
Beta (1Y)0.44
Revenue Growth2.60%
EPS Growth-11.05%
CountryHK
Employees21,266
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.42
Shares Outstanding3,781,286,000
10 Day Avg. Volume5,170,568
30 Day Avg. Volume3,331,992
Financial Highlights & Ratios
PEG Ratio-2.02
Price to Book (P/B)0.53
Price to Sales (P/S)0.66
P/FCF Ratio-23.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$3.57Price Target Upside14.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.4
Revenue Forecast (FY)HK$21.67B
Towngas China Co Business Overview & Revenue Model
Company Description
Towngas Smart Energy Company Limited, an investment holding company, sells piped gas, renewable energy, and other types of energy in the People’s Republic of China. The company operates through Sales of Piped Gas Business; Gas Connection; Renewabl...
How the Company Makes Money
Towngas China primarily makes money by developing and operating city-gas distribution businesses in mainland China and charging customers for gas and related services. Key revenue streams generally include: (1) Gas sales to end-users: The core bus...
Towngas China Co Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.80B | 20.91B | 21.31B | 19.84B | 20.07B | 17.13B |
| Gross Profit | 2.15B | 2.24B | 5.47B | 4.72B | 2.32B | 2.72B |
| EBITDA | 2.70B | 2.71B | 2.91B | 2.73B | 2.53B | 2.73B |
| Net Income | 1.52B | 1.59B | 1.61B | 1.57B | 964.86M | 1.25B |
Balance Sheet | ||||||
| Total Assets | 57.74B | 55.21B | 53.04B | 53.46B | 52.94B | 54.24B |
| Cash, Cash Equivalents and Short-Term Investments | 3.41B | 2.50B | 2.73B | 4.11B | 4.08B | 4.08B |
| Total Debt | 18.41B | 17.31B | 17.47B | 18.56B | 19.83B | 19.54B |
| Total Liabilities | 28.60B | 27.05B | 27.28B | 28.23B | 29.08B | 29.06B |
| Stockholders Equity | 26.66B | 25.72B | 23.45B | 22.85B | 21.50B | 22.90B |
Cash Flow | ||||||
| Free Cash Flow | 250.36M | -574.94M | -1.49B | -3.42B | -1.57B | -177.88M |
| Operating Cash Flow | 1.18B | 1.80B | 2.35B | 1.30B | 1.80B | 2.61B |
| Investing Cash Flow | -275.69M | -655.97M | -2.77B | 635.96M | -3.57B | -8.14B |
| Financing Cash Flow | -1.77B | -1.49B | -862.84M | -1.75B | 2.04B | 7.31B |
Towngas China Co Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | HK$37.79B | 11.22 | 7.90% | 5.43% | 0.94% | 17.12% | |
60 Neutral | HK$11.46B | 7.36 | 5.79% | 6.14% | 2.60% | -11.05% | |
59 Neutral | HK$133.98B | 20.86 | 10.65% | 4.79% | 1.53% | 12.95% | |
55 Neutral | HK$30.73B | 11.26 | 4.80% | 6.09% | -7.13% | -16.53% | |
52 Neutral | HK$55.92B | 7.97 | 12.80% | 5.84% | 5.69% | 8.67% | |
41 Neutral | HK$7.42B | 33.31 | 2.98% | 1.08% | -6.70% | 50.09% |
* Utilities Sector Average
HK:1083
Towngas China Co
3.09
-0.58
-15.76%
HK:0384
China Gas Holdings
5.75
-1.60
-21.84%
HK:1193
China Resources Gas Group
17.51
-1.73
-9.01%
HK:0003
Hong Kong & China Gas Co
7.30
0.60
8.91%
HK:2688
ENN Energy Holdings
51.40
-10.93
-17.54%
HK:3633
Zhongyu Gas Holdings Limited
2.78
-0.87
-23.91%
Towngas China Co Corporate Events
Towngas Smart Energy Sets August Board Meeting to Approve Interim Results
Aug 5, 2026
Towngas Smart Energy Company Limited has scheduled a board meeting for 17 August 2026 to review and approve its unaudited consolidated interim results for the six months ended 30 June 2026. The board will also consider the declaration of an interi...
Towngas Smart Energy Fully Redeems 2026 Convertible Bonds
Jul 7, 2026
Towngas Smart Energy has fully redeemed its unsecured convertible bonds due 2026, originally issued in a principal amount of RMB1.84 billion and converted at an agreed exchange rate into Hong Kong dollars. On the 7 July 2026 maturity date, the com...
Towngas Smart Energy Sets Final 2025 Dividend and Offers Scrip Option
Jun 11, 2026
Towngas Smart Energy Company Limited has declared a final ordinary dividend of HKD 0.14 per share for the financial year ended 31 December 2025, following shareholder approval on 27 May 2026. Shareholders will have a default option of receiving th...
Towngas Smart Energy Wins Strong Shareholder Backing at AGM
May 27, 2026
Towngas Smart Energy Company Limited reported that all resolutions put to shareholders at its annual general meeting on 27 May 2026 were approved by poll with strong majorities. Investors endorsed the adoption of the 2025 audited financial stateme...
Towngas Smart Energy Brings Forward Maturity of 2026 Convertible Bonds
May 8, 2026
Towngas Smart Energy Company Limited has agreed with the holder of its RMB1.84 billion unsecured convertible bonds to bring forward the bonds’ maturity date from 18 November 2026 to 7 July 2026, with all other terms unchanged. None of the bo...
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.