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Towngas China Co
(1083)
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Rating:60Neutral
Price Target:
HK$3.00
â–¼(-3.85% Downside)
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
Improving leverage
A sustained decline in debt-to-equity indicates gradual balance-sheet de-risking and gives the regulated utility greater capacity to manage investment needs. Lower leverage can also reduce financing pressure and preserve flexibility when operating conditions or capital requirements change.
Negative Factors
Sharp margin compression
The substantial reduction in gross and operating margins signals weaker underlying profitability and raises questions about how sustainably the business converts revenue into earnings. If this pressure persists, it could limit reinvestment capacity and weaken the quality of reported profit.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage
A sustained decline in debt-to-equity indicates gradual balance-sheet de-risking and gives the regulated utility greater capacity to manage investment needs. Lower leverage can also reduce financing pressure and preserve flexibility when operating conditions or capital requirements change.
Read all positive factors
Towngas China Co (1083) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$11.14B
Dividend Yield6.44%
Average Volume (3M)2.39M
Price to Earnings (P/E)7.0
Beta (1Y)0.38
Revenue Growth2.60%
EPS Growth-11.05%
CountryHK
Employees21,266
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.42
Shares Outstanding3,782,389,000
10 Day Avg. Volume2,365,827
30 Day Avg. Volume2,393,309
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$3.85Price Target Upside23.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.41
Revenue Forecast (FY)HK$21.73B
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 | 3.11B | 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 | 1.21B | -574.94M | -1.49B | -3.42B | -1.57B | -177.88M |
| Operating Cash Flow | 2.99B | 1.80B | 2.35B | 1.30B | 1.80B | 2.61B |
| Investing Cash Flow | -886.09M | -655.97M | -2.77B | 635.96M | -3.57B | -8.14B |
| Financing Cash Flow | -2.17B | -1.49B | -862.84M | -1.75B | 2.04B | 7.31B |
Towngas China Co Technical Analysis
Negative
3.12
Price Trends
2.99
Negative
3.08
Negative
3.24
Negative
Market Momentum
-0.02
Positive
46.38
Neutral
15.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1083, the sentiment is Negative. The current price of 3.12 is above the 20-day moving average (MA) of 2.98, above the 50-day MA of 2.99, and below the 200-day MA of 3.24, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 15.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1083.
Towngas China Co Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$55.06B | 7.50 | 12.80% | 6.21% | 5.69% | 8.67% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
61 Neutral | HK$37.02B | 10.46 | 7.90% | 5.82% | 0.94% | 17.12% | |
60 Neutral | HK$11.14B | 7.01 | 5.79% | 6.44% | 2.60% | -11.05% | |
59 Neutral | HK$135.66B | 20.77 | 10.65% | 4.81% | 1.53% | 12.95% | |
55 Neutral | HK$27.02B | 9.73 | 4.80% | 7.05% | -7.13% | -16.53% | |
45 Neutral | HK$7.30B | 31.87 | 2.98% | 1.13% | -6.70% | 50.09% |
* Utilities Sector Average
HK:1083
Towngas China Co
2.95
-0.73
-19.93%
HK:0384
China Gas Holdings
4.96
-2.61
-34.45%
HK:1193
China Resources Gas Group
16.32
-3.92
-19.38%
HK:0003
Hong Kong & China Gas Co
7.27
0.39
5.61%
HK:2688
ENN Energy Holdings
48.76
-15.08
-23.62%
HK:3633
Zhongyu Gas Holdings Limited
2.66
-0.43
-13.91%
Towngas China Co Corporate Events
Towngas Smart Energy Offers Interim Dividend with Scrip Option for 2026 Half-Year
Sep 11, 2026
Towngas Smart Energy Company Limited has declared an interim ordinary dividend of HKD 0.05 per share for the six months ended 30 June 2026, payable in cash with an option for shareholders to receive scrip shares at a conversion price of HKD 3.041 ...
Towngas Smart Energy Re-designates Kenneth Liu as Independent Director to Bolster Governance
Sep 9, 2026
Towngas Smart Energy has re-designated Mr. Kenneth Liu Kai-lap from Non-executive Director to Independent Non-executive Director, effective 9 September 2026, and appointed him to its Audit and Risk, Remuneration and Nomination committees. The move...
Towngas Smart Energy sets out board and committee structure
Sep 9, 2026
Towngas Smart Energy Company Limited has announced the current composition of its board of directors, led by non-executive chairman Dr. the Hon. Lee Ka-kit and supported by a mix of executive, non-executive and independent non-executive directors ...
Towngas Smart Energy Declares Interim Dividend with Scrip Option
Aug 17, 2026
Towngas Smart Energy Company Limited has declared an interim ordinary dividend of HKD 0.05 per share for the six months ended 30 June 2026, payable in cash by default with an option for shareholders to receive scrip shares. The ex-dividend date is...
Towngas China boosts revenue and renewables as gas margins improve in H1 2026
Aug 17, 2026
Towngas China reported first-half 2026 revenue growth of 9% to HK$11.33 billion, with profit attributable to shareholders at HK$690 million despite a challenging macroeconomic backdrop. The group enhanced energy management and efficiency, maintain...
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...
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.